Key Highlights:
- Braden Karony, former CEO of SafeMoon, was found guilty by a New York jury of securities fraud, wire fraud, and money laundering.
- Following the verdict, the SFM token dropped over 4% in 24 hours, and the project’s valuation fell from $1 billion to just $7.5 million.
Verdict and “Locked Liquidity” Fraud
On May 21, a New York jury officially found Braden John Karony, former CEO of the SafeMoon (SFM) crypto project, guilty. The charges brought by the U.S. Department of Justice (DOJ) included:
- Conspiracy to commit securities fraud
- Wire fraud
- Money laundering
The decision followed a two-week trial, during which prosecutors demonstrated that the SafeMoon team siphoned funds from supposedly “locked liquidity” pools for personal gain.
According to the indictment:
- Karony, along with Thomas Smith (former CTO of SafeMoon) and Kyle Nagy (project founder), misappropriated millions in investor funds between 2021–2022.
- Smith has already pleaded guilty and testified against Karony, while Nagy remains a fugitive, reportedly in Russia.
- Karony’s assets worth $1.8 million have been seized, and he remains in custody pending sentencing.
Market Reaction and SafeMoon Crash
The SafeMoon project had already been under pressure since the beginning of the legal investigations.
Following the verdict:
- SafeMoon’s market capitalization dropped from nearly $1 billion to just $7.5 million.
- The SFM token price fell over 4% in 24 hours, reaching approximately $0.00002 during late North American trading.
Although the broader altcoin market is attempting to mirror Bitcoin’s rally, SafeMoon remains in a steep downtrend.
- In comparison, BTC price rose over 4% during the same period, reaching around $109,000, while BNB and Dogecoin led the altcoin recovery.
Conclusion:
The conviction of Braden Karony is a stark reminder of how lack of transparency and misuse of funds in crypto projects can lead to serious legal consequences. SafeMoon, once hailed as a “DeFi revolution,” is now struggling to survive after a catastrophic collapse in both trust and valuation.
Investors must exercise extreme caution with projects that lack clear governance, verifiable liquidity, and genuine accountability. The era of “easy money” without consequences in crypto is ending — and justice is beginning to take action.
Frequently Asked Questions
Find answers to the most common questions below.
Braden Karony, former CEO of SafeMoon, was convicted of conspiracy to commit securities fraud, wire fraud, and money laundering.
The SFM token fell over 4% within 24 hours of the verdict, and the project's valuation dropped from nearly $1 billion to just $7.5 million.
Former CTO Thomas Smith has pleaded guilty and testified against Karony, while project founder Kyle Nagy remains a fugitive, reportedly in Russia.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice. Crypto-assets are highly volatile, so only invest funds you are willing to lose and use your own research and risk management.
