SafeMoon CEO Braden John Karony was convicted by a federal jury on three counts of fraud related to a cryptocurrency scheme that defrauded investors of millions. He faces up to 45 years in prison for conspiracy to commit securities fraud, wire fraud, and money laundering. SafeMoon LLC issued the SafeMoon digital asset in 2021, which had a 10% transfer tax. Prosecutors allege Karony and co-conspirators diverted millions from the liquidity pool for personal gain, despite claims that half the fee was locked in liquidity. Karony reportedly made over $9 million in crypto profits, used to buy luxury cars and real estate. Co-conspirator Thomas Smith pleaded guilty; Kyle Nagy remains at large. Karony denies the charges on social media. The U.S. Attorney's Office highlighted the fraudulent nature of the scheme.

A federal jury has convicted SafeMoon CEO Braden John Karony on three counts of fraud stemming from a crypto scheme that allegedly defrauded investors of millions of dollars.Karony could face up to 45 years in prison on charges of conspiracy to commit securities fraud, wire fraud, and money laundering, the U.S. Attorney's Office for the Eastern District of New York said in a Wednesday release.In 2021, SafeMoon LLC issued the digital assets known as SafeMoon, which once reached a market cap of more than $8 billion. The cryptocurrency had a 10% tax on every transfer.While the project told investors that half of the 10% fee would be "locked" in a liquidity pool, U.S. prosecutors said that Karony and co-conspirators fraudulently diverted millions in liquidity from the pool for personal gains."As proven at trial, the SafeMoon digital asset was anything but safe and turned out to be pie in the sky for investors who were deliberately misled by Karony, a man who sought to get rich quick by stealing and diverting millions of dollars," said Attorney Joseph Nocella, Jr.While Karony claimed company executives did not hold or trade SafeMoon, prosecutors said they repeatedly bought and sold the cryptocurrency to make millions in illicit profits, which they concealed through a "labyrinth" of private, unhosted wallets, transaction routing and pseudonymous accounts on centralized exchanges.Karony alone allegedly made more than $9 million in crypto assets, which he used to purchase millions of dollars' worth of real estate and several luxury automobiles, including two Audi R8 sports cars, a Tesla, and more.Co-conspirator Thomas Smith previously pleaded guilty and is awaiting sentencing, while another co-conspirator Kyle Nagy is still at large.Meanwhile, Karony repeatedly wrote on X that he is innocent and did not commit fraud.The Block has reached out to Karony for comment on the matter.

SafeMoon CEO Found Guilty of Cryptocurrency Fraud, Faces Up to 45 Years in Prison