SafeMoon CEO John Karony has been found guilty of orchestrating a large-scale fraud involving the SafeMoon token.
The verdict, delivered by a U.S. federal court, marks one of the most significant convictions in the decentralized finance (DeFi) sector.
🚨 BREAKING: Former SafeMoon CEO Braden John Karony has been found guilty on all three criminal counts against him: Securities Fraud Conspiracy, Wire Fraud Conspiracy, and Money Laundering Conspiracy pic.twitter.com/KR5iqInMoI
— Protos (@Protos) May 21, 2025
John Karony and other SafeMoon executives were accused of misleading investors and misappropriating millions of dollars in funds. According to the prosecution, Karony and his associates promised investors their funds would be locked and used solely for project development. Instead, evidence presented in court revealed that a substantial portion of these funds was diverted for personal use and lavish purchases, including luxury cars and real estate.
The SafeMoon project, launched in 2021, quickly gained popularity among retail investors due to aggressive marketing and promises of high returns. However, regulatory authorities began investigating the company after numerous complaints of sudden price crashes and a lack of transparency regarding the token’s liquidity pools.
The court found Karony guilty on multiple counts, including securities fraud, wire fraud, and conspiracy to commit money laundering. He now faces a potential sentence of up to 45 years in federal prison. Sentencing is scheduled for later this year.
This case has sent shockwaves through the crypto community, highlighting the urgent need for stronger oversight and investor protection in the DeFi space. The SafeMoon verdict could set a precedent for future enforcement actions against fraudulent crypto projects.
In response to the conviction, regulatory bodies have reiterated their commitment to cracking down on deceptive practices in the cryptocurrency industry. Meanwhile, SafeMoon’s token value has plummeted, and many investors have called for restitution.
Notably, Former Chief Technology Officer of SafeMoon, Thomas Smith, has pleaded guilty to charges related to a multimillion-dollar scheme. Smith admitted to misleading investors about the security of SafeMoon’s liquidity pool and the alleged misappropriation of funds by Smith and others for personal gain.
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