CEO Convicted in Massive Fraud, Faces 45-Year Sentence
The post CEO Convicted in Massive Fraud, Faces 45-Year Sentence appeared on BitcoinEthereumNews.com. Key Takeaways: SafeMoon CEO Braden Karony convicted of wire fraud, securities fraud, and money laundering. Over $9 million misappropriated from SafeMoon’s liquidity pool, used for luxury cars and real estate. Market cap once topped $8B, now a symbol of how hype-fueled DeFi projects can unravel into criminal schemes. In a landmark case that underscores the high-stakes risks in crypto investing, Braden Karony—the CEO of SafeMoon—has been found guilty on all charges in a multi-million dollar fraud scheme. Once hailed as a DeFi success story, SafeMoon’s dramatic fall is now a cautionary tale for investors and regulators alike. DeFi Giant Turns Ponzi-Like Operation SafeMoon launched in early 2021 amid the height of the meme coin and DeFi craze. The token quickly gained viral popularity, with celebrity endorsements and promises of passive income through its auto-staking tax model. At its peak, the project reached a staggering $8 billion market cap and attracted millions of holders globally. But beneath the surface, federal prosecutors revealed a calculated plan of deception. Karony and his co-conspirators secretly retained full access to the “locked” liquidity pool, which was promoted to investors as secure and inaccessible to insiders. Rather than supporting token stability, they diverted millions of dollars from these pools into personal wallets. Luxury Lifestyle Funded by Stolen Crypto According to the U.S. Department of Justice, Karony used his access to siphon over $9 million worth of crypto, which he then laundered through complex wallets and pseudonymous exchange accounts. The funds were used to purchase: A $2.2 million home in Utah Other residences in Utah and Kansas A $277,000 Audi R8, additional sports cars, and custom trucks This was no isolated operation. Prosecutors noted that Karony’s trading activity directly contradicted SafeMoon’s public statements. While marketing claimed no insider trading, Karony and his team regularly bought and sold…
The post CEO Convicted in Massive Fraud, Faces 45-Year Sentence appeared on BitcoinEthereumNews.com.
Key Takeaways: SafeMoon CEO Braden Karony convicted of wire fraud, securities fraud, and money laundering. Over $9 million misappropriated from SafeMoon’s liquidity pool, used for luxury cars and real estate. Market cap once topped $8B, now a symbol of how hype-fueled DeFi projects can unravel into criminal schemes. In a landmark case that underscores the high-stakes risks in crypto investing, Braden Karony—the CEO of SafeMoon—has been found guilty on all charges in a multi-million dollar fraud scheme. Once hailed as a DeFi success story, SafeMoon’s dramatic fall is now a cautionary tale for investors and regulators alike. DeFi Giant Turns Ponzi-Like Operation SafeMoon launched in early 2021 amid the height of the meme coin and DeFi craze. The token quickly gained viral popularity, with celebrity endorsements and promises of passive income through its auto-staking tax model. At its peak, the project reached a staggering $8 billion market cap and attracted millions of holders globally. But beneath the surface, federal prosecutors revealed a calculated plan of deception. Karony and his co-conspirators secretly retained full access to the “locked” liquidity pool, which was promoted to investors as secure and inaccessible to insiders. Rather than supporting token stability, they diverted millions of dollars from these pools into personal wallets. Luxury Lifestyle Funded by Stolen Crypto According to the U.S. Department of Justice, Karony used his access to siphon over $9 million worth of crypto, which he then laundered through complex wallets and pseudonymous exchange accounts. The funds were used to purchase: A $2.2 million home in Utah Other residences in Utah and Kansas A $277,000 Audi R8, additional sports cars, and custom trucks This was no isolated operation. Prosecutors noted that Karony’s trading activity directly contradicted SafeMoon’s public statements. While marketing claimed no insider trading, Karony and his team regularly bought and sold…
What's Your Reaction?
