Justice Served: Utah CEO Found Guilty in Major Crypto Fraud Scheme Facing Up to 45 Years in Prison

Utah Man Convicted in Major Cryptocurrency Fraud Case Faces Significant Prison Time

By Daniel Woodruff, KSL-TV

SALT LAKE CITY — The CEO of the cryptocurrency company SafeMoon, based in Utah, is facing a lengthy prison sentence following a guilty verdict in a high-profile fraud case. Braden John Karony, 29, was convicted on multiple counts including securities fraud, money laundering, and wire fraud after a 12-day jury trial in the Eastern District of New York.

Karony, who was arrested in Provo in 2023, could face up to 45 years in prison when he is sentenced later this year, according to statements from prosecutors. His conviction comes as a relief for victims who lost money in the scheme, which prosecutors described as fraudulent and misleading.

"We’re one step closer to justice for the victims," stated John Jasnoch, a San Diego-based attorney representing several individuals who invested in SafeMoon and suffered significant financial losses. He added, "It’s really a difficult thing to come out and admit that you were scammed."

Karony and other executives of SafeMoon allegedly deceived investors regarding the operational integrity of the company. They are accused of misusing millions of dollars worth of cryptocurrency tokens to purchase luxury vehicles, real estate, and fund personal investments from the company’s resources. Among the assets tied to the fraudulent activities is an 8,000-square-foot home in Pleasant Grove, Utah, valued at nearly $2 million.

At its peak, SafeMoon’s market capitalization soared to more than $8 billion, highlighting the company’s initial popularity within the cryptocurrency space. Alongside Karony, another company executive, Thomas Smith, has pleaded guilty in connection with the fraud and is awaiting sentencing, while a third executive, Kyle Nagy, remains at large.

Darren McCormack, acting special agent in charge at Homeland Security Investigations, New York, characterized Karony’s conduct as driven by greed. "Steered by his selfish desires and insatiable greed, Braden John Karony treated millions of dollars in investors’ funds as his own personal bank account,” he stated. "The defendant will soon be trading his sprawling real estate and luxury vehicles for a jail cell within the four walls of a federal penitentiary."

Karony’s educational background includes attendance at Utah Valley University and LDS Business College, and he is a former Army service member, as noted in court documents.

Attorney John Jasnoch remarked on the emotional toll the scheme has taken on its victims, many of whom lacked the sophistication typically associated with institutional investors. He described the actions of Karony and his colleagues as a "betrayal," noting the discrepancies between their promises and the actual performance of SafeMoon.

In addition to pursuing justice through the criminal court system, Jasnoch also indicated his intention to seek restitution for victims through a bankruptcy case related to SafeMoon. "It’s not the Wild West anymore," he emphasized, warning others in the cryptocurrency sector that fraudulent behavior will lead to consequences. "If you make misrepresentations and if you defraud people, you are going to get caught and you are going to go to jail."

Currently, while awaiting sentencing, Karony remains free on bail. A hearing concerning his bail status is scheduled for Tuesday.

This case underscores the ongoing scrutiny of the cryptocurrency industry, as regulators and law enforcement entities step up efforts to combat fraud and protect investors.