Former SafeMoon CEO Found Guilty of Crypto Fraud

The Eastern District of New York has found former SafeMoon CEO Braden Karony guilty of three counts of criminal activity, local media reported.

In particular, the man was found guilty of laundering money through cryptocurrency, wire fraud, and defrauding investors in the securities industry. A federal jury returned a guilty verdict after a 12-day trial. Caroni could be sentenced to up to 45 years in prison. The court also ordered the confiscation of one residential building and the proceeds from the sale of another property worth about $2 million. According to the US Department of Justice, Caroni and his accomplices created a false representation of the operation of the SFM token, which allegedly provided benefits to holders due to a 10% “tax” on each transaction.

Half of the proceeds were allegedly sent to token holders, while the other half was locked in a liquidity pool to support the coin’s price. However, as the investigation revealed, Caroni retained control of the liquidity pool. He siphoned off millions of dollars he received from users and spent them on luxury cars and real estate. Also, investors had no real access to these assets.

“The SafeMoon digital asset was a pie in the sky for investors who were intentionally misled by Caroni, a man who sought to get rich quick by stealing money from thousands of Americans,” said U.S. Attorney Joseph Nocella.