SafeMoon CEO Found Guilty in $2B Crypto Scheme—Another Black Eye for ’DeFi Innovation’

Another crypto exec falls—this time, the mastermind behind SafeMoon’s alleged rug pull. A federal jury didn’t buy the ’decentralized finance utopia’ pitch.

The verdict? Guilty on all counts for siphoning investor funds. That $2 billion vaporized faster than a meme coin’s liquidity pool.

Yet another reminder: when a project’s whitepaper reads like a get-rich-quick scheme, it probably is. But hey—at least the blockchain was ’transparent’ enough to trace the theft.

Investigators revealed that Karony, alongside key figures in the company, redirected millions meant for development and stability. While Karony denied wrongdoing, a former executive admitted guilt and testified against him. Another co-founder reportedly fled the country and is believed to be in Russia.

The conviction comes amid a broader crackdown on crypto-related fraud, following recent high-profile cases involving other digital asset executives. Authorities warn that such cases reveal a pattern of deception hidden behind flashy branding and technical jargon.

In the wake of the trial, SafeMoon’s token (SFM) dropped by 10% in a single day, continuing a month-long slide. Despite the decline, trading volume briefly rose—possibly reflecting speculative interest or panic trading.

Karony’s sentencing has yet to be scheduled, but he faces a potential 45-year prison term. The SafeMoon case now stands as a stark example of how crypto hype can be weaponized for personal gain, leaving retail investors footing the bill.