SafeMoon Mastermind Braden Karony Faces 45 Years After Jury Finds Him Guilty in Multi-Million Dollar Crypto Deception

A Brooklyn federal jury delivered guilty verdicts against Braden Karony on every count related to a sophisticated cryptocurrency operation that defrauded investors of millions through false DeFi promises. On May 21, after a 12-day trial, jurors determined that Karony orchestrated wire fraud, securities violations, and money laundering connected to the $200M crypto fraud scheme centered around SafeMoon.

How the SafeMoon Scam Operated

When Karony and his associates introduced SafeMoon in March 2021, they positioned it as a revolutionary DeFi token built on principles of investor protection and sustainable liquidity mechanisms. The promotional materials highlighted a 10% transaction tax designed to reward token holders and continuously strengthen market stability through locked liquidity pools—a technical safeguard that supposedly made investor funds immovable.

Behind this facade, however, Karony maintained backdoor access to the very liquidity pools he claimed were locked and untouchable. Over time, he systematically extracted millions, routing the diverted capital into personal bank accounts. Those stolen proceeds funded an extravagant lifestyle: a $2.2 million Utah property, additional real estate in Kansas, a pair of Audi R8 vehicles, a Tesla, and custom trucks.

US Attorney Joseph Nocella characterized the operation bluntly: “Karony didn’t build a safe financial product — he built a pipeline for theft. He looted investor funds and used them to fill his garages and bankrupt his lifestyle.”

Tracking the Crypto Trail

Federal agents from the IRS-Criminal Investigation division, FBI, and Homeland Security Investigations traced the misappropriated assets by following blockchain movements across pseudonymous wallets and centralized exchange accounts. The investigation expanded internationally, with law enforcement from Australia, Canada, the Netherlands, and the UK joining the effort to dismantle the cross-border money laundering network.

IRS-CI Special Agent in Charge Harry T. Chavis, Jr. stated: “Karony lined his driveways with sports cars while deceiving millions. We tracked his crypto movements and exposed the scheme for what it was — outright theft.”

Additional evidence revealed that Karony masked his personal SafeMoon trades during periods of peak price appreciation, generating supplementary illegal profits. Simultaneously, he maintained public messaging assuring investors that project insiders were not manipulating token prices—a lie contradicted by his own hidden trading activity.

Legal Consequences and What’s Next

The jury ordered forfeiture of approximately $2 million in real estate tied to the operation. Braden Karony now faces sentencing later in the year with potential imprisonment reaching 45 years.

Co-conspirator Thomas Smith entered guilty pleas previously and awaits sentencing. Kyle Nagy, the third member of the conspiracy, remains fugitive.

Notably, the SafeMoon project itself has since transitioned into community stewardship and rebranded as a memecoin, effectively severing ties with its fraudulent origins.