A New York jury found Braden John Karony, the former CEO of cryptocurrency company SafeMoon, guilty of three felony charges after less than a day of deliberation.
According to May 21 reporting from the courtroom, in the US District Court for the Eastern District of New York, a jury convicted Karony of conspiracy to defraud the United States, money laundering, and wire fraud. Prosecutors and defense lawyers presented their cases over the roughly two-week trial that kicked off with jury selection on May 5.
Karony, former chief technology officer, Thomas Smith, and the platform’s creator, Kyle Nagy, were charged in 2023 for having allegedly “diverted and misappropriated millions of dollars’ worth” of SafeMoon’s SFM token. Smith testified against Karony at trial, while Nagy reportedly fled to Russia and was at large as of May 21.
The criminal trial involving a cryptocurrency company executive was seen by many as a bellwether for how Joseph Nocella, the interim US Attorney for the district, could handle cases involving digital assets and fraud. Nocella, a Donald Trump appointee, took office on May 5.
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At the time of publication, it was unclear when Karony would return to court for sentencing. He could face years in prison for his role in the fraud at SafeMoon. Smith, who reportedly entered a guilty plea as part of a deal with prosecutors, could receive a lighter sentence.
Karony’s trial followed a sentencing hearing for former Celsius CEO Alex Mashinsky in the Southern District of New York, where a judge ordered him to prison for 12 years after a guilty plea. Former FTX CEO Sam Bankman-Fried, who pleaded not guilty and went to trial, was sentenced to 25 years after a 2023 verdict.
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