A US federal choose 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 Decide 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.
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The courtroom additionally scheduled a separate listening to on restitution and monetary penalties for April 23.
“This Was a Large Fraud”: Decide Rejects Protection Pleas
Throughout sentencing, Decide Komitee dismissed protection arguments that Karony’s age and background ought to mitigate his punishment.
“This was a large fraud,” the choose 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 inconceivable.
Victims described shedding life financial savings, promoting private belongings, and delaying house 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.
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Prosecutors sought a 12-year sentence, arguing Karony confirmed no regret and understood the implications of mendacity to traders.
The choose 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 accordance with the case, insiders retained management over the liquidity and misappropriated hundreds of thousands of {dollars}, whereas publicly assuring traders their funds have been protected.
Authorities stated Karony personally benefited from diverted belongings 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 yr.
With at the moment’s sentence, the SafeMoon case joins a rising record of crypto prosecutions the place courts have handled damaged belief and liquidity abuse as prison theft, not innovation gone flawed.