FBI Seeks SafeMoon Victims for Restitution Process Following Fraud Conviction

The FBI's New York field office has launched a victim appeal for investors defrauded by SafeMoon executives during the 2021-2022 bull market. Former CEO Braden John Karony was convicted in May 2025 on multiple counts including securities fraud and money laundering, while co-conspirator Kyle Nagy remains at large.

Prosecutors established that $5 million was siphoned from SafeMoon's liquidity pool through false representations about executive access and fund usage. The Bureau now requires V1 investors to complete impact statements, which will determine restitution eligibility under federal statutes.

"Victims may qualify for certain services and rights under the law," states the FBI notice, emphasizing confidentiality for voluntary disclosures. The case highlights persistent vulnerabilities in DeFi governance, with one victim confirming losses exceeding $5,000 in social media testimony.