SafeMoon chief executive Braden John Karony was sentenced to 100 months in prison by a federal judge in New York for his role in a crypto fraud scheme tied to the SFM token.
Karony was convicted last year of conspiracy to commit securities fraud, wire fraud and money laundering, and was also ordered to forfeit $7.5 million, with restitution to victims still to be determined.
“Karony lied to investors from all walks of life—including military veterans and hard working Americans—and defrauded thousands of victims,”
Said US Attorney, Joseph Nocella, adding that:
“The sentence showed there were significant consequences for financial crimes.”
The prison term of eight years and four months was below the 12-year sentence sought by prosecutors but far less than the potential 45 years Karony faced under federal sentencing guidelines.
SafeMoon rose to a peak market capitalisation of about $8 billion in 2021 by using a 10% transaction tax that was marketed as benefiting holders and supporting liquidity.
Prosecutors said Karony diverted funds meant for liquidity pools, maintaining access to tokens investors believed were locked and using the proceeds to buy luxury homes and vehicles.
One co-conspirator has pleaded guilty and is awaiting sentencing, while another alleged accomplice remains at large, according to the US Attorney’s Office.
At the time of reporting, SafeMoon price was $0.053339.