Braden Karony

Braden John Karony
Born:
Charges:	Conspiracy to commit securities fraud, Conspiracy to commit wire fraud, Conspiracy to commit money laundering
Sentence:	100 months (8 years, 4 months) federal prison
Facility:	Federal custody
Status:	Incarcerated

Braden John Karony is an American former technology executive who ran SafeMoon, a cryptocurrency project that drew a multibillion-dollar market value during the 2021 crypto boom and then collapsed. A federal jury in Brooklyn convicted him in May 2025 of conspiracy to commit securities fraud, wire fraud, and money laundering. Prosecutors proved that Karony and others told the public the project's investor funds were locked away and untouchable, then took the money for themselves.

On February 10, 2026, U.S. District Judge Eric R. Komitee sentenced Karony to 100 months in federal prison and ordered him to forfeit roughly $7.5 million along with two homes. The case was one of a series of crypto-fraud prosecutions the Justice Department brought after the 2021 boom turned over.

Background

Karony was born in Virginia and lived in Provo, Utah. He served about six years in the U.S. Army before moving into the cryptocurrency industry. He became chief executive of SafeMoon US LLC, the Utah company built around the SafeMoon token.

SafeMoon

SafeMoon launched in March 2021 as a cryptocurrency token. It arrived in the middle of a retail trading frenzy and climbed fast. According to the Securities and Exchange Commission, the token's price rose more than 55,000 percent over about five weeks in the spring of 2021, and its market value passed $5.7 billion. Millions of people bought in.

The pitch rested on one promise. SafeMoon told buyers that the pool of funds backing the token, its liquidity pool, was locked. The people running the project, the company said, could not reach that money or pull it out. That promise was meant to reassure investors that insiders could not drain the project and walk away.

The promise was false. On April 20, 2021, the price fell by nearly half after it became public that the liquidity pool was not locked the way the company had claimed. The token never recovered its peak.

SafeMoon was created by Kyle Nagy, who used the handle "SafeMoonDev." Karony ran the company as CEO. Thomas Smith served as chief technology officer. The corporate entities, SafeMoon LLC and SafeMoon US LLC, were based in Utah. SafeMoon filed for Chapter 7 bankruptcy in December 2023.

The Scheme

Prosecutors said the locked-liquidity claim was the center of the fraud. While SafeMoon told the public that executives could not touch the pool, Karony and his associates were doing exactly that. As the market value grew, they diverted millions of dollars of the project's funds and used the money on themselves, all while publicly denying that they held or spent SafeMoon assets.

In its civil complaint, the SEC alleged that the defendants withdrew crypto assets worth more than $200 million from the project. The agency also said Karony used misappropriated funds to buy SafeMoon and prop up the price after the April 2021 crash, including trades designed to fake market activity.

The criminal case put a narrower figure on Karony's personal take. Evidence at trial showed he acquired more than $9 million in crypto assets through the scheme. He spent it on a $2.2 million house in Utah, additional homes in Utah and Kansas, two Audi R8 sports cars, a Tesla, and custom Ford and Jeep trucks.

Charges and Trial

On November 1, 2023, federal prosecutors in the Eastern District of New York unsealed a three-count indictment charging Karony with conspiracy to commit securities fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering. The SEC filed parallel civil fraud charges the same day. Karony was arrested in Provo.

Karony went to trial. The case was heard over twelve days before U.S. District Judge Eric R. Komitee in Brooklyn. On May 21, 2025, the jury convicted him on all three counts after deliberating about three hours.

The case was investigated by the Internal Revenue Service Criminal Investigation division, the Federal Bureau of Investigation, and Homeland Security Investigations.

Sentencing

Judge Komitee sentenced Karony on February 10, 2026, to 100 months in federal prison, which is eight years and four months. The court ordered him to forfeit about $7.5 million and two residential properties. Restitution to victims was left to be set at a later date.

The Bureau of Prisons facility assigned to Karony has not been publicly reported.

Co-Defendants

Two other men were charged in connection with SafeMoon.

Kyle Nagy, the creator of the token, was not in custody when the indictment came down. He has been reported to have left the United States for Russia rather than face trial. He has not been convicted.

Thomas Smith, the chief technology officer, pleaded guilty in February 2025 to conspiracy to commit securities fraud and conspiracy to commit wire fraud. He awaited sentencing.

Frequently Asked Questions

Q: Who is Braden Karony?

Braden John Karony is the former chief executive of SafeMoon, a cryptocurrency project that reached a multibillion-dollar market value in 2021 before collapsing. A federal jury in Brooklyn convicted him in May 2025 of conspiracy to commit securities fraud, wire fraud, and money laundering.

Q: What did Braden Karony do?

Prosecutors proved that SafeMoon told investors the project's funds were locked and beyond the reach of its executives, while Karony and others were quietly taking that money for themselves. Karony acquired more than $9 million in crypto assets through the scheme and spent it on homes and cars.

Q: How long is Braden Karony's sentence?

U.S. District Judge Eric R. Komitee sentenced Karony on February 10, 2026, to 100 months in federal prison, which is eight years and four months.

Q: What was SafeMoon?

SafeMoon was a cryptocurrency token launched in March 2021. It rose more than 55,000 percent in about five weeks and reached a market value above $5.7 billion before crashing in April 2021, when it became public that the project's liquidity pool was not locked as the company had claimed.

Q: Did Braden Karony go to trial?

Yes. Karony did not plead guilty. He was tried over twelve days before Judge Eric Komitee in Brooklyn, and on May 21, 2025, the jury convicted him on all three counts.

Q: What happened to the other SafeMoon executives?

Kyle Nagy, who created the token, was not in custody when charges were filed and has been reported to have left for Russia. Thomas Smith, the chief technology officer, pleaded guilty in February 2025 and awaited sentencing.

Q: How much money was involved in the SafeMoon fraud?

The SEC alleged in its civil case that the defendants withdrew crypto assets worth more than $200 million from the project. In the criminal case, evidence showed Karony personally acquired more than $9 million, and the court ordered him to forfeit about $7.5 million.