Verdict: SafeMoon’s Former CEO Convicted of Crypto Fraud
Braden Karony, SafeMoon’s ex-Chief Executive Officer, has been found guilty by a New York federal grand jury. The court determined his culpability in a significant cryptocurrency fraud case. Notably, Karony was indicted on several counts; the charges ranged from committing securities fraud and wire fraud to engaging in money laundering activities.
Details of the Fraud
The legal proceedings have confirmed that the former CEO defrauded numerous investors and illegally funneled their funds to purchase upscale properties and automobiles. Deceptively, Karony and his accomplices misled investors about SafeMoon’s functioning. They exploited the collected funds for personal gains, as stated in the Department of Justice’s recent press release.
Statement from U.S. Attorney
U.S. Attorney Joseph Nocella described the SafeMoon digital asset as a risky bet for its investors instead of being a secure investment. Commenting on the case, he said, “As proven at trial, the SafeMoon digital asset was anything but safe and turned out to be pie in the sky for investors deliberately misled by Karony. Karony used his scheme to purchase multiple homes, sports cars, custom trucks, and other luxury goods.”
Market Reaction
Unsurprisingly, the news had an unsettling impact on the SafeMoon token’s market. Following the public revelation of the verdict, SafeMoons token (SFM) experienced a 7% drop to $0.00001925. This further burdened the token that has been facing continuous deterioration in its value, currently down by 99.7% from its peak value three years prior.
Involvement of Co-defendants
But it was not just Karony who exploited SafeMoon operations. His co-defendants, Thomas Smith and Kyle Nagy, were also found to be implicated in manipulating SafeMoon’s liquidity pools, draining them despite public assurances of them being locked. Caught red-handed, Smith confessed to his guilt, corroborating the case against Karony in the trial. Meanwhile, Nagy has allegedly fled to Russia and is currently on the run.
Personal Gains and Potential Sentence
The prosecuting authorities have revealed that the fraudulent scheme enabled Karony to amass over $9 million for personal gains. Astonishingly, this colossal amount was lavishly spent on a $2.2 million house in Utah, several other real estate properties, and high-end vehicles that include two Audi R8s, a Tesla, and tailor-made trucks. With the conviction now public, Karony is facing a stern sentence: the ex-CEO may be put behind bars for up to 45 years. The date for the final sentencing has not yet been announced.
