From Viral Token to Federal Prison: SafeMoon’s CEO Sentenced to 100 Months

Federal prosecutors say what was marketed as “locked” liquidity, rug pull protection, and automatic holder rewards helped to provide a credibility shield. However, insiders secretly retained access to the liquidity pool and allegedly siphoned value out.

A federal jury in convicted SafeMoon’s CEO Braden John Karony on all counts tied to a multi million dollar crypto fraud scheme.

The sentencing was handed down by the U.S. District Court for the Eastern District of New York after a jury conviction in May 2025.

How the SafeMoon Case Unfolded

The case began with an indictment unsealed in November 2023 charging Karony and two others with securities fraud conspiracy, wire fraud conspiracy, and money laundering conspiracy.

Prosecutors alleged investors didn’t get the full picture when it came to about to liquidity being truly inaccessible or locked. Also, executives lied about their ability to access and benefit from the liquidity pool.

Moreover, investigators say that insiders still had access to liquidity pools and used that access for personal benefit. While publicly denying key facts like holding and trading the token themselves.

As a result, the SafeMoon’s former CEO got a sentence of 100 months, roughly 8 years, in prison for his role in a multi-million-dollar crypto fraud scheme.

According to an official Department of Justice press release, the defendant was found guilty on all counts at trial. Including securities fraud conspiracy, wire fraud conspiracy, and money laundering conspiracy tied.

Additionally, prosecutors outlined a pattern that had investors misled about the security of the SafeMoon liquidity pool and the accessibility of funds.

The DOJ asserted that the CEO and others secretly accessed those funds and diverted investor capital for personal uses. Including luxury purchases and real estate.

Therefore, the judge noted both the scale of the financial harm and the breach of investor trust as factors supporting the sentence.

Lastly, the court also ordered forfeiture of property purchased with proceeds of the scheme and imposed restitution aimed at returning funds to victims.

One co-conspirator previously pleaded guilty and is awaiting sentencing, while another remains at large.

Spotting “Too Safe to Fail” Narratives for Crypto Users

For crypto investors it’s important to stay safe from the next version of this playbook.

Indeed, users should stay vigilant of projects that loudly market “locked liquidity” or rug pull proof features but won’t provide verifiable, third-party confirmations of how access control actually works.

Additionally, tokenomics that sound investor-friendly on paper could mean a red flag. They come as taxes that “reward holders.” However, they create misleading flows most buyers can’t trace independently.

Similarly, there’s a growing trend of leaders who rely on slogans and community hype. This helps them avoid transparent operational disclosure, audits, and clear custody rules.

Cases like SafeMoon’s highlight why investors should remain skeptical of projects that rely more on slogans than verifiable safeguards.

Most claims around security mean little without transparent audits, independently verifiable controls, and clear disclosure of who ultimately holds access.

Furthermore, users should treat trust as something earned through proof, not promises. Indeed, if a project’s safety narrative isn’t possible to validate on-chain or through credible oversight, the risk may be far greater than it appears.

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