SafeMoon CEO Convicted on Felony Charges
A former CEO of the cryptocurrency firm SafeMoon, Braden John Karony, was convicted on three felony charges by a New York jury after just a few hours of deliberation. The verdict was reached in the US District Court for the Eastern District of New York, where Karony was found guilty of conspiracy to defraud the government, money laundering, and wire fraud. The trial commenced on May 5, 2023, and lasted approximately two weeks, with jury selection occurring on the first day.
Allegations and Testimonies
Karony, alongside Thomas Smith, the former chief technology officer, and Kyle Nagy, the platform’s creator, faced serious allegations for misappropriating millions in funds linked to SafeMoon’s SFM token. Throughout the trial, Smith provided testimony against Karony, while Nagy remains elusive, reportedly having fled to Russia.
Implications for Future Digital Currency Cases
This trial is viewed as a critical indicator of how the Acting US Attorney for the Eastern District of New York, Joseph Nocella—who took office on May 5—might tackle future cases involving digital currencies and associated frauds. Nocella was appointed during the Trump administration.
Sentencing and Broader Context
As of now, it remains uncertain when Karony will be sentenced; however, he faces the possibility of several years in prison for his involvement in these fraudulent activities at SafeMoon. Meanwhile, Smith is anticipated to receive a lighter sentence due to a guilty plea as part of a plea bargain with prosecutors.
Karony’s conviction adds to a growing list of executives within the cryptocurrency sector facing legal challenges. This follows notable cases like that of former Celsius CEO Alex Mashinsky, who was sentenced to 12 years after pleading guilty, and former FTX CEO Sam Bankman-Fried, who received a 25-year sentence after being found guilty following a trial in 2023.
