Braden John Karony, the former CEO of the decentralized finance (DeFi) protocol SafeMoon, has been sentenced to eight years in federal prison for orchestrating a multi-million dollar cryptocurrency fraud scheme. A U.S. District Judge in Brooklyn handed down the sentence after Karony was convicted of conspiracy to commit securities fraud, wire fraud, and money laundering. Prosecutors established that Karony and other executives misled investors by claiming that SafeMoon’s liquidity pools were ‘locked’ and inaccessible, ensuring the safety of their investments. In reality, Karony retained access to the funds, misappropriating over $200 million to purchase luxury custom cars, real estate, and other personal extravagances. The scheme’s exposure led to a massive collapse in the token’s value, wiping out billions of dollars in market capitalization for retail investors. Along with the prison term, Karony has been ordered to pay restitution and forfeit significant assets acquired through the fraudulent activity. This case highlights the ongoing efforts by federal authorities to crack down on deception and financial crimes within the digital asset market.
Source: SafeMoon CEO Gets 8 Years in Prison for Crypto Fraud Scheme
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