Karony was also ordered to forfeit approximately $7.5 million, with restitution to be determined. In a separate case, Daren Li, a dual national of China and St. Kitts and Nevis, was sentenced to 20 years in US federal prison for orchestrating a global cryptocurrency scam that defrauded victims of more than $73 million through a pig butchering scheme involving spoofed trading platforms and shell companies. Eight co-conspirators in Li’s case have pleaded guilty and await sentencing.
SafeMoon Boss Jailed
Former SafeMoon CEO Braden Karony has been sentenced to 100 months in prison after being found guilty of siphoning millions of dollars from the crypto platform’s liquidity pool to bankroll a lavish personal lifestyle. The sentence was handed down on Monday, nine months after a federal jury convicted Karony in May of 2025 on charges including conspiracy to commit securities fraud, wire fraud, and money laundering.
Court reporting from Inner City Press
Prosecutors said Karony misappropriated more than $9 million in digital assets from SafeMoon’s liquidity pool in 2021, at the height of the retail-driven crypto boom. According to federal authorities, the funds were diverted for personal use rather than being safeguarded for the benefit of token holders. FBI Assistant Director James C. Barnacle, Jr. said Karony not only abused his authority as CEO but also betrayed the trust of investors who believed their funds were secure in the platform.
Court filings revealed how Karony used the proceeds to finance high-end purchases, including a $2.2 million home in Utah, an Audi R8 sports car, a Tesla, and customized Ford F-550 and Jeep Gladiator trucks. Prosecutors argued that these expenditures stood in stark contrast to public assurances made to investors about the integrity and security of SafeMoon’s liquidity pool.
Braden John Karony
US Attorney Joseph Nocella, Jr. explained that Karony’s actions harmed a broad cross-section of investors, including military veterans and everyday Americans who placed their savings into the platform.
In addition to the prison term, Karony was ordered to forfeit approximately $7.5 million. The exact amount of restitution owed to victims will be determined at a later date, according to the Department of Justice.
The case also ensnared other SafeMoon executives. Former chief technology officer Thomas Smith pleaded guilty in February of 2025 to conspiracy to commit securities and wire fraud and is awaiting sentencing. Meanwhile, SafeMoon’s founder, Kyle Nagy, is still at large.
Karony’s conviction now adds to the growing list of high-profile crypto executives sentenced for misconduct during the 2021–2022 market cycle. Former FTX CEO Sam Bankman-Fried is serving a 25-year sentence, while former Celsius CEO Alex Mashinsky is serving 12 years.
Crypto Scam Mastermind Gets 20 Years
Meanwhile, a dual national of China and St. Kitts and Nevis has been sentenced to 20 years in US federal prison for masterminding a global cryptocurrency scam that defrauded victims of more than $73 million. Daren Li, 42, received the statutory maximum sentence in the US District Court for the Central District of California, along with three years of supervised release, according to a statement that was released Tuesday by the Department of Justice.
Li has been considered a fugitive since December of 2025 after allegedly removing his electronic ankle monitor and fleeing while awaiting legal proceedings. US authorities said they are coordinating with international law enforcement partners to secure his return so he can serve his full sentence.
Press release from the US Department of Justice
Prosecutors shared how Li and at least eight co-conspirators orchestrated a sophisticated “pig butchering” scheme, which is a form of long-term phishing scam that involves building trust with victims before persuading them to invest in fraudulent crypto opportunities. The group allegedly created spoofed websites and domain names designed to mimic legitimate crypto trading platforms, which gave victims the false impression that their funds were being invested in genuine digital asset markets.
Court documents show that the conspirators frequently initiated contact through social media platforms and dating applications. They would cultivate what appeared to be professional or romantic relationships with targets, before directing them to transfer funds into accounts controlled by the criminal network.
Li admitted that he and his associates tricked victims into transferring at least $73.6 million into bank accounts linked to the operation. Of that total, approximately $59.8 million was funneled through US shell companies used to launder the stolen funds. The funds were then moved through various financial channels to obscure their origin and complicate recovery efforts.
Li is the first defendant in the case to be sentenced. Eight other co-conspirators have pleaded guilty and are awaiting sentencing. The investigation is still ongoing and is being led by the US Secret Service’s Global Investigative Operations Center, with support from Homeland Security Investigations’ El Camino Real Financial Crimes Task Force and the US Marshals Service.
