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
Schiff Warns Strategy Ad May Trigger Lawsuits over Bitcoin Risks
Schiff Flags Legal Risks in STRC Promotion
Peter Schiff criticized Strategy’s recent advertisement and questioned its portrayal of financial outcomes linked to STRC stock. He argued that the campaign presents an overly optimistic lifestyle narrative tied to investment performance, and that such mes
CryptoBreaking4h ago
Massachusetts city to weigh crypto ATM ban, citing financial risks
The city council of Haverhill, Massachusetts is set to consider a ban on cryptocurrency ATMs following a proposal for an ordinance introduced on March 17.
According to Haverhill City Council’s agenda, the government body is scheduled to review a crypto ATM ordinance introduced by Mayor Melinda
Cointelegraph5h ago
Crypto dispute over Resupply exploit lands in Singapore harassment court
A Singapore court has ordered crypto figures Wang Lei and user "web3feng" to cease defamatory statements targeting Curve contributor Wang Haoming following online accusations related to a 2025 DeFi exploit. They must pay approximately $1,900 in compensation.
Cointelegraph9h ago
Singapore orders a halt to disputes related to the Resupply hack amid the smear campaign in the crypto war
Singapore orders to stop disputes related to the Resupply hack in the crypto smear war
A court in Singapore has ordered OneKey founder Wang Lei and a user on X to end threatening and defamatory accusations aimed at a collaborator involved with Curve, after a dispute
TapChiBitcoin10h ago
U.S. prediction markets face a legislative crackdown, as multiple bills are set to ban election and sensitive event contracts
The U.S. prediction market industry faces legislative pressure amid rapid expansion, with monthly trading volume rising from $1.2 billion to $20 billion. Six bills are being advanced by Congress, covering contracts that would prohibit insider trading and related sensitive events, while multiple states have filed lawsuits against the relevant platforms and regulation is tightening.
GateNews10h ago
U.S. lawmakers bring up another major bill: “de-Sinofication” of the mining industry, and Bitcoin reserves included in the law
U.S. Senators Bill Cassidy and Cynthia Lummis introduced a new “American Mining Act,” aimed at promoting domestic Bitcoin mining, reducing reliance on Chinese equipment, and incorporating a Bitcoin strategic reserve into the legal framework. The bill establishes a mine certification system, encourages local equipment manufacturing, and emphasizes the role of encrypted mining infrastructure. As competition in science and technology between the U.S. and China intensifies, mining has become a new focus, and the U.S. is accelerating regulation of relevant Chinese companies.
区块客10h ago
