BlockBeats News, February 11 — According to Coindesk, the United States District Court for the Eastern District of New York sentenced former SafeMoon CEO Braden John Karony to 8 years in prison this Tuesday.
Braden was convicted last year on multiple federal charges for engaging in fraudulent investor activities within his digital asset business. According to the U.S. Department of Justice, Karony participated in manipulating the price of SafeMoon tokens and illegally controlling the company’s liquidity, stealing millions of dollars. After a three-week trial, he was found guilty of conspiracy to commit securities fraud, wire fraud, and money laundering.
Co-conspirator Thomas Smith admitted to conspiracy to commit securities fraud and wire fraud in February 2025 and has not yet been sentenced. Another co-conspirator suspected of involvement in the SafeMoon scam, Kyle Nagy, is still at large and wanted by authorities.
SafeMoon (SFM) is a cryptocurrency token launched in March 2021, born during the last bull market’s meme coin and DeFi craze. Its tokenomics stipulate a 10% tax fee on each transaction, with part of it (usually 5%) automatically redistributed as dividends to all holders, another part added to the liquidity pool and burned to create deflation, and the rest used for project development. The design concept is “encourage holding, punish selling,” allowing holders to earn passive income and hoping the token price can “safely moon.” Its market cap once reached $1 billion, attracting many retail investors and FOMO players. Subsequently, the project was hacked due to a contract vulnerability, and the team was accused of fraud, liquidity manipulation, and misappropriation of funds. After a prolonged decline, its market cap has now dropped to only $2.08 million.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Nigeria's FIRS Begins Trial Against Major CEX Over Alleged Tax Evasion
Nigeria's tax authority, FIRS, has begun legal proceedings against a centralized exchange for alleged tax evasion related to VAT and CIT on cryptocurrency transactions. The trial is set for April 11, 2025, as questions arise regarding the obligation of foreign entities to comply with local tax laws.
GateNews1h ago
Thepeer Co-Founder Denies Fraud Claims Nearly Two Years After Shutdown, Says $750K Never Received
Michael Okoh, co-founder of Thepeer, refuted allegations of missing funds before the company's shutdown, clarifying that claimed investments were never made and funds were fully accounted for. He cited internal governance issues, not fraud, as the problem.
GateNews1h ago
Encouraging innovation! U.S. judges ban Arizona from regulating prediction markets, and pause the prosecution against Kalshi
A U.S. federal district court ruled that Arizona cannot use its gambling laws to prosecute the prediction market platform Kalshi, finding that the U.S. Commodity Futures Trading Commission has exclusive jurisdiction. The ruling affects the boundary between state and federal authority in financial market regulation, and Kalshi insists that its business is financial products rather than traditional gambling. Rulings on prediction markets vary across states, and the Trump family has also expressed support for prediction markets.
CryptoCity2h ago
Is it possible to bypass FSC regulations on buying crypto with card payments? Oadingding rolls out the Wallet Pro service for buying crypto with a U.S. debit card
The OwlPay and Wallet Pro services launched by OdinTing use stablecoin technology to enable B2B cross-border payments, and they partner with international payments giants to showcase their ambitions to expand in the fintech space. By operating from abroad, OdinTing bypasses Taiwan’s regulatory restrictions, offering faster virtual-asset trading, while also facing the newly issued Virtual Assets Services Act; in the future, it may become a reference template for other foreign-invested companies entering the Taiwan market.
CryptoCity3h ago
Thodex Founder Farul Fatih Ozer Arrested in Turkey, Faces Charges Over Alleged $2B Theft
Farul Fatih Ozer, founder of the collapsed cryptocurrency exchange Thodex, was arrested in Istanbul, facing fraud and money laundering charges. Allegedly fleeing with $2 billion in investor funds, Ozer's case claims significant financial losses and has led to a nationwide cryptocurrency payment ban in Turkey.
GateNews4h ago
Encouraging innovation! A U.S. judge bars Arizona from regulating a prediction market and suspends the prosecution of Kalshi
A U.S. federal district court ruled that Arizona is prohibited from relying on its gambling laws to prosecute prediction market platform Kalshi, finding that the federal Commodity Futures Trading Commission has exclusive jurisdiction. The ruling affects the boundary between state and federal authority in financial market regulation, while Kalshi insists that its business falls under financial products rather than traditional gambling. Rulings on prediction markets vary from state to state, and the Trump family has also expressed support for prediction markets.
CryptoCity5h ago
