Former SafeMoon CEO Braden Karony has been convicted on all counts of conspiracy to commit securities fraud, wire fraud, and money laundering—marking yet another high-profile takedown in the crypto industry’s turbulent legal reckoning. The verdict, delivered by a federal jury in New York on May 21, followed a 12-day trial that revealed how Karony and his co-conspirators allegedly misused investor trust and exploited SafeMoon’s infrastructure for personal gain.

Karony now faces up to 45 years in prison. The jury also ordered the forfeiture of millions in assets tied to the scheme, including homes and luxury cars.

How SafeMoon’s “Locked Liquidity” Was a Lie

According to prosecutors, Karony and his team promoted SafeMoon as a secure digital asset with locked liquidity pools and a 10% transaction tax meant to protect investors. These claims were instrumental in gaining community trust and driving token adoption. However, the reality painted a different picture—one where insiders retained unrestricted access to liquidity, freely moved funds through private wallets, and sold tokens during peak hype cycles.

Evidence presented in court showed that Karony personally profited over $9 million. His purchases included a $2.2 million Utah home, additional real estate in Kansas, a Tesla, and high-end vehicles like an Audi R8 and customized Ford and Jeep trucks.

Insider Testimony and International Evasion

Thomas Smith, a SafeMoon co-defendant, took the stand against Karony after striking a plea deal. Meanwhile, platform creator Kyle Nagy remains a fugitive, believed to be residing in Russia. The prosecution highlighted this as a classic case of insider enrichment, with millions funneled out of supposedly secure pools into pseudonymous wallets for personal use.

“This wasn’t just financial negligence. It was deliberate, strategic looting,” said prosecutors during closing arguments.

A Broader Message to the Crypto Industry

The case is part of a broader crackdown on crypto fraud. With prior convictions of Celsius’s Alex Mashinsky and FTX’s Sam Bankman-Fried, the Justice Department is clearly signaling its intent to pursue crypto-related misconduct with full force.

U.S. Attorney Jaqueline Romero Nocella issued a stern warning in her post-verdict statement: “This case shows that digital assets don’t exist outside the law. Karony’s actions betrayed thousands of investors who believed in SafeMoon’s promise of transparency and safety.”

While sentencing is still pending, the conviction of Braden Karony is a sobering moment for the crypto world—a reminder that trust and decentralization are not shields from accountability.