Braden Karony, the 29-year-old founder of the once-viral cryptocurrency SafeMoon, was sentenced to 100 months (over eight years) in federal prison on Tuesday.
As reported by U.Today, Karony was arrested over fraud and money laundering back in 2023.
Key highlights
The sentencing marks the final chapter for the token that turned out to be a "massive fraud."
SafeMoon launched in the spring of 2021, quickly gaining notoriety because of endorsements from various celebrities, including Logan Paul. The project was allegedly building a "locked" liquidity pool, but it turned out to be a lie. Karony and his co-conspirators retained access to the funds
Judge Eric Komitee of the Eastern District of New York handed down the sentence after a hearing that oscillated between the defense’s unique pleas regarding Karony’s upbringing and the testimony of financial ruin from victims.
During the hearing, victims spoke about the consequences of Karony's "rug pull."
"We were lured in by SafeMoon and Mr. Karony," said a victim identified as "SW," an experienced crypto investor who appeared in court. Karony’s public visibility was a key selling point. "He made it personal, he unmasked himself... We trusted Mr. Karony."
The defense, however, attempted to frame Karony as a misguided young man overwhelmed by sudden success. His attorneys argued for leniency based on his age. The defense also invoked Karony’s family background, revealing that his parents were both CIA employees.
"His father was chasing Bin Laden. These are patriots," the defense argued, suggesting Karony had been raised to trust others and lacked malice. They described him as "kind and humble," a man who had "given more of himself than most ever will."
Judge Komitee ultimately sided with the prosecution. "This is more like theft than fraud," Judge Komitee remarked before delivering the sentence. "It was not a small loss per person like in many securities frauds."
Alex Dovbnya
Dan Burgin
Denys Serhiichuk
Gamza Khanzadaev