A US federal decide sentenced Braden John Karony, the previous CEO of SafeMoon, to 100 months in jail, following his conviction for fraud tied to the collapse of the once-hyped Solana token.
US District Choose Eric Komitee delivered the sentence after listening to emotional sufferer testimony and forceful arguments from prosecutors, who accused Karony of exploiting investor belief whereas secretly diverting funds.
The courtroom additionally scheduled a separate listening to on restitution and monetary penalties for April 23.
“This Was a Large Fraud”: Choose Rejects Protection Pleas
Throughout sentencing, Choose Komitee dismissed protection arguments that Karony’s age and background ought to mitigate his punishment.
“This was an enormous fraud,” the decide stated, including that Karony and his co-conspirators “went to nice pains to earn the belief” of traders by repeatedly assuring them {that a} rug pull was unimaginable.
Victims described dropping life financial savings, promoting private property, and delaying dwelling possession and schooling plans.
A number of stated they invested as a result of Karony made himself extremely seen and reliable, contrasting him with Bitcoin’s nameless creator.
Prosecutors sought a 12-year sentence, arguing Karony confirmed no regret and understood the implications of mendacity to traders.
The decide in the end imposed a shorter however nonetheless substantial sentence of 8 years and 4 months.
How SafeMoon Collapsed
SafeMoon launched in 2021 with guarantees of long-term rewards and a “locked” liquidity pool that executives claimed couldn’t be accessed.
Federal prosecutors later alleged that these claims have been false.
In response to the case, insiders retained management over the liquidity and misappropriated tens of millions of {dollars}, whereas publicly assuring traders their funds have been protected.
Authorities stated Karony personally benefited from diverted property whereas persevering with to advertise the token and deny any danger of a rug pull.
The prosecution framed the scheme as deliberate deception, not mismanagement or market failure. A jury agreed, convicting Karony on fraud-related counts earlier this 12 months.
With right now’s sentence, the SafeMoon case joins a rising checklist of crypto prosecutions the place courts have handled damaged belief and liquidity abuse as prison theft, not innovation gone mistaken.
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