SafeMoon’s $2 Billion Scandal: Former CEO Found Guilty?
Jakarta, Pintu News – A New York court recently found Braden Karony, the former CEO of SafeMoon, guilty in a $2 billion crypto fraud case. This decision marks one of the biggest scandals in the crypto industry that continues to come under scrutiny.
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The Big Scam Behind the Promise of Safety
Braden Karony, who once led blockchain company SafeMoon, was convicted of fraud that cost investors up to $2 billion. According to the US Department of Justice, Karony used investors’ trust to enrich himself by purchasing luxury assets.
The Eastern District Court of New York revealed that SafeMoon’s digital assets, which were supposed to provide security, were nothing more than empty promises that misled investors. Karony and his co-conspirators were found to have diverted investor funds to their personal use.
The funds were used to buy luxury homes, sports cars, and other luxury items. According to reports, Karony bought a $2.2 million home in Utah and luxury cars such as an Audi R8 and a Tesla.
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Fraud Scheme Details and Impacts
This fraudulent scheme involved diverting funds from a supposedly secure liquidity pool. Karony and his team claimed that the funds were locked up, but in reality, they drained the pool for personal gain.
FBI Assistant Director Raia stated that Karony utilized his company’s digital portfolio to create fictitious success stories, while diverting millions of dollars of crypto assets. The court found that Karony’s actions were not only financially detrimental but also destroyed public confidence in the crypto industry.
The scam caused huge losses to investors and tarnished the reputation of blockchain technology, which is supposed to provide transparency and security.
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Market Reaction and the Future of SafeMoon
Following the announcement of the court results, the SafeMoon (SFM) token price plummeted 10% in a day. Currently, the SFM price stands at $0.00001749, down 20% in a week and 50% in a month.
Despite the downward price trend, the 24-hour trading volume still showed an increase, reflecting lingering investor confidence. Crypto markets often respond dramatically to negative news like this.
However, the lingering confidence of some investors suggests that there is still hope for recovery. Market analysts suggest that close monitoring of further developments and transparency from SafeMoon’s new management team will be crucial.
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*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.
Reference
- Coingape. Former SafeMoon CEO Braden John Karony Found Guilty in $2B Crypto Fraud. Accessed on May 23, 2025
- Featured Image: Safemoon
