SafeMoon’s Ex-CEO Convicted on All Counts—Another Crypto ’Moon Mission’ Crashes to Earth

Another crypto exec falls from orbit—this time it’s SafeMoon’s former CEO, who just got handed a legal black hole after being found guilty on every charge. The verdict lands like a ton of bricks (or a dumped token) in an industry already reeling from ’trust us’ promises gone sour.

No surprise here—when the ’safest moon’ turns out to be a courtroom freefall, maybe investors should’ve questioned why the whitepaper read more like a get-rich-quick fanfic. But hey, at least the lawyers got their ATH.

$2.2M Utah Home Among Assets Bought with Fraud Proceeds

Prosecutors say the defendants repeatedly bought and sold tokens at market peaks. Moreover, they routed proceeds through private wallets and pseudonymous accounts.

As a result, Karony alone netted over $9m. He used those funds to buy a $2.2m home in Utah and additional properties in Utah and Kansas. He also purchased a $277,000 Audi R8, another Audi R8, a Tesla, and custom Ford F-550 and Jeep Gladiator trucks.

Co-defendant Thomas Smith testified against Karony after pleading guilty and could receive a lighter sentence, while platform creator Kyle Nagy reportedly fled to Russia and remains at large. The jury also ordered forfeiture of one residential property and the proceeds from another, totalling about $2m.

‘Pie in the Sky’ Ruling Highlights Investor Betrayal

The Justice Department’s business and securities fraud section is handling the case. Additionally, Assistant US Attorneys Dana Rehnquist, Sara Winik and Jessica Weigel are leading the prosecution. Meanwhile, Assistant US Attorney Laura Mantell is overseeing forfeiture matters. They are supported by paralegal specialists Asher Martin-Rosenthal and Madison Bates.

“At trial, we proved that the SafeMoon digital asset was anything but safe and turned out to be pie in the sky for investors,” said US Attorney Jaqueline Romero Nocella. “Karony used his scheme to purchase homes, sports cars, custom trucks, and other luxury goods. This verdict should warn fraudsters that we will vigorously prosecute those who prey on digital-asset investors.”

Karony’s trial followed the January sentencing of former Celsius CEO Alex Mashinsky to 12 years in prison after a guilty plea, and the 25-year term handed to former FTX chief Sam Bankman-Fried in 2023.

Those cases, alongside Wednesday’s verdict, point to the Justice Department’s intensified focus on digital asset markets and signal that executives who breach investor trust will face severe penalties.