SafeMoon Founder Braden Karony Sentenced 100 Months for $9M Liquidity Theft
Former SafeMoon CEO Braden John Karony was sentenced to 100 months (8 years, 4 months) in U.S. federal prison after a May 2025 jury conviction on charges of securities fraud, wire fraud and money laundering. Prosecutors say Karony and associates falsely claimed SafeMoon’s liquidity pools were “locked” while diverting more than $9 million from those pools into private accounts and luxury purchases, including real estate and vehicles. The Eastern District of New York ordered roughly $7.5 million forfeited; additional restitution and asset recovery proceedings are pending. Former CTO Thomas Smith has pleaded guilty and awaits sentencing; other co-founders remain under investigation or missing. The case highlights intensified U.S. enforcement of crypto fraud and underscores counterparty and tokenomic risks — especially when projects claim centralized “locked” liquidity. Traders should note increased regulatory and criminal scrutiny on crypto projects, higher due diligence needs around liquidity controls and smart-contract guarantees, and potential reputational pressure on projects marketed with opaque tokenomics.
Bearish
The sentencing of SafeMoon’s founder for diverting $9M from liquidity pools is likely bearish for the SafeMoon token specifically. Short-term, the conviction and forfeiture will increase sell pressure as holders and speculators react to reduced trust and negative publicity. Market-making and listings could be disrupted if exchanges delist or reduce support pending investigations or asset recovery actions. Mid- to long-term, trust in the project’s tokenomics and claims of “locked” liquidity will be undermined, lowering investor confidence and reducing demand unless governance, transparency and contract-level guarantees are credibly restored. Broader crypto markets may see limited contagion; impact is concentrated on SafeMoon and projects with similar centralized liquidity controls or opaque tokenomics. Overall, expect downward price pressure on the token until concrete remediation (on-chain proofs, independent audits, recovered assets, or new governance) is demonstrated.