A Utah CEO is Sentenced to 100 Months in Federal Prison and Ordered to "Forfeit" $7.5 Million He Absconded Through his Fraudulent Activities

In 2021, Pleasant Grove, Utah-based SafeMoon launched its decentralized "SafeMoon" digital asset token, a cryptocurrency which, at one point, rose to a value of over $8 billion in part because of fraudulent claims insiders at the company would be unable to access said digital assets.

In reality, in his 12-day May 2025 trial on federal conspiracy charges of 1) Securities fraud, 2) Wire fraud, and 3) Money laundering, Braden John Karony was found guilty on all charges for having absconded with over $9 million in crypto assets from the scheme.

With these ill-gotten proceeds, Karony purchased luxury vehicles and real estate, including a $2.2 million home in Utah, additional homes in Utah and Kansas, a $277,000 Audi R8 sports car, another Audi R8, a Tesla, and custom Ford F-550 and Jeep Gladiator pickup trucks.

Braden John Karony, former Chief Executive Officer of SafeMoon US, a digital asset company headquartered in Pleasant Grove, Utah, was sentenced to 100 months in federal prison for conspiracy to commit securities fraud, wire fraud, and money laundering following his 12-day trial and conviction in May 2025.

Additionally, according to the news announcement published last week by the United States Attorney's Office (Eastern District of New York), Karony was sentenced in federal court in Brooklyn by U.S. District Judge Eric Komitee and ordered to forfeit approximately $7.5 million of his ill-gotten gains.

Karony was convicted by a federal jury following a three-week trial in May 2025.

Prosecutors also said the jury issued a verdict to forfeit two residential properties.

As described in the news release by the U.S. Attorney’s Office for the Eastern District of New York and Internal Revenue Service Criminal Investigation, the company launched its "SafeMoon" cryptocurrency token in March 2021 and used a so-called smart contract (with a 10% transaction tax) via marketing that represented portions would benefit holders and support designated liquidity pools.

Authorities alleged Karony and co-conspirators misrepresented key aspects of that structure, including claims about “locked-in” liquidity and limitations on how liquidity pool assets would be used.

According to marketing communications from the company, the mechanics behind the cryptocurrency tokens were designed to prevent Karony and other company insiders from

🔺 "removing liquidity from the SafeMoon liquidity pool" and

🔺 "that tokens in the liquidity pool would only be used for limited pre-defined business purposes, not personal enrichment ..." and that internal processes

🔺 "... (prevented) the developers (from) holding and trading SafeMoon (tokens) for their benefit."

In reality, prosecutors proved at trial that Karony retained access to the liquidity pools and diverted assets for personal benefit, while also buying and selling the SafeMoon tokens despite public denials.

Additionally, authorities said proceeds were routed through multiple digital wallet addresses and accounts to obscure movement of funds.

In describing alleged personal benefits from the scheme, prosecutors stated that Karony acquired over $9 million in crypto assets and used proceeds to purchase vehicles and real estate, "... including a $2.2 million home in Utah, additional homes in Utah and Kansas, a $277,000 Audi R8 sports car, another Audi R8, a Tesla, and custom Ford F-550 and Jeep Gladiator pickup trucks."

Prosecutors further stated in last week's news release that co-conspirator Thomas Smith pled guilty in February 2025 to conspiracy to commit securities fraud and wire fraud and is awaiting sentencing.

Prosecutors also stated in the release that co-conspirator Kyle Nagy remains at large.

Separately, Utah Money Watch readers should know that SafeMoon filed for voluntary Chapter 7 bankruptcy protection with the United States Bankruptcy Court for the District of Utah on 23 December 2023.

Additionally, on 26 December 2025, certain digital assets of SafeMoon were sold for ~$445,000 to Galaxy Digital Trading Cayman, LLC.

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