Crypto CEO Gets 8-Year Vacation in Federal Spa (No Hot Tubs Though)

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Well, well, well. Looks like the crypto world’s very own Fyre Festival organizer, Braden John Karony, has been handed a 100-month stay in the federal slammer. That’s right, the former CEO of Safemoon-a company that sounds like a Disney villain’s retirement plan-is swapping his Utah mansion for a cozy cell. Oh, and he’s also parting ways with $7.5 million and two properties. Restitution? Still TBD. Because why rush to pay back the people you scammed, right?

Asset Forfeiture and Victim Restitution (Or: How to Lose a Mansion in 100 Months)

So, District Judge Eric Komitee decided Braden Karony needed a little less DeFi and a little more “do time.” After a three-week trial that was probably more dramatic than a soap opera, a jury found him guilty of conspiracy to commit securities fraud, wire fraud, and money laundering. Turns out, “decentralized finance” doesn’t mean “decentralized accountability.” Who knew?

In addition to his new 8-year subscription to Federal Prison Monthly, Karony’s parting gifts include forfeiting $7.5 million and two residential properties. The court will decide later how much he owes his victims. Because, you know, justice loves a good cliffhanger.

Prosecutors proved Karony siphoned over $9 million from Safemoon’s liquidity pools-basically the crypto equivalent of raiding the office petty cash. What did he spend it on? Oh, just the usual: a $2.2 million mansion, a fleet of sports cars (Audi R8, Tesla, and custom trucks-because why not?), and probably a lifetime supply of avocado toast. United States Attorney Joseph Nocella, Jr. put it best: “Karony lied to investors from all walks of life… to buy mansions, sports cars, and custom trucks.” Because nothing says “trust me with your money” like a garage full of luxury vehicles.

Safemoon, which peaked in 2021 with an $8 billion market cap, promised investors a 10% tax on every transaction-5% to existing holders and 5% to “locked” liquidity pools. Spoiler alert: the “locked” part was about as real as a unicorn riding a rainbow. Karony and his pals kept the keys to the kingdom, using fancy financial tricks to steal millions. And while they publicly denied trading the token, they were selling it like hotcakes at its peak. One co-conspirator, Thomas Smith, already pleaded guilty. Guess he didn’t want to miss out on the federal spa retreat.

Fabricated Liquidity and Insider Trading (Or: How to Fake It Till You Make It to Prison)

The “locked” liquidity pools? Totally fake. Karony and his crew used un-hosted wallets and complex transaction routing to hide their theft. It’s like a magic trick, but instead of pulling a rabbit out of a hat, they pulled millions out of thin air. And while they claimed they weren’t trading the token, they were selling it faster than a Black Friday sale. Classy.

The investigation was a real team effort, involving the FBI, IRS-CI, and Homeland Security Investigations. IRS-CI Special Agent Harry T. Chavis, Jr. summed it up perfectly: “His game of hide-and-seek failed, and now he must face justice.” HSI’s Michael Alfonso added that the scheme exploited the trust of over a million victims. So, yeah, not exactly a feel-good story.

FAQ ❓ (Because You Know You’re Curious)

  • Who is Braden John Karony? The former CEO of Safemoon, now starring in his own prison drama.
  • What sentence did he receive? 100 months in federal prison, plus a $7.5M forfeiture and two fewer homes.
  • How did he defraud investors? By turning Safemoon’s liquidity pools into his personal ATM.
  • What was Safemoon’s impact? It hit an $8B market cap in 2021 before collapsing faster than a house of cards in a windstorm.

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2026-02-11 18:38