In the case heard in the United States, SafeMoon’s former top manager, Braden John Karony, was sentenced to 100 months in prison on fraud charges. In the decision given by Judge Eric Komimee in the Brooklyn federal court in New York, it was ruled that Karony abused the investor’s trust.
Investors’ Losses and Emotional Impacts
The victims who testified during the court explained that they suffered serious financial losses due to the investments they made in SafeMoon. Some investors stated that they lost all their savings and had to sell their valuables in this process. It has been reported that many goals, from education opportunities to home ownership plans, have been postponed due to fraud.
The victims stated that Karony was constantly visible throughout the project process, gained the trust of the community, and made them believe him with his statements.
Justification of the Court and Requests of the Prosecutor’s Office
In court, prosecutors stated that Karony’s actions to mislead investors were intentional. It was alleged that Karony was aware of the consequences of the crime and showed no remorse. Judge Komimee emphasized the magnitude of the damage done; He stated that Karony and his collaborators made intense efforts to gain the trust of investors and maintained access to funds despite their claims to the contrary.
The judge emphasized that the incident was in the nature of theft rather than traditional fraud, that large sums of money were lost one by one, and that the damage was serious.
Prosecutors requested a 12-year prison sentence for Karony, but the court sentenced him to 8 years and 4 months in prison. In addition to the sentence, a separate hearing for fines and compensation is scheduled for April 23.
Irregularities in the SafeMoon Project
Launched in 2021, SafeMoon promised investors long-term rewards and a ‘locked’ liquidity pool. The project team claimed that investor funds could not be touched and there was no risk of a sudden decrease in value. However, documents revealed during the lawsuit showed that managers secretly maintained liquidity control and used millions of dollars of funds for their own benefit. It was stated that Karony also gained financial benefit from the project.
Product; It quickly collapsed due to allegations of misrepresentation, misappropriation of funds and misleading investors. The jury found Karony guilty of fraud.
With the prison sentence given, the SafeMoon case became one of the examples showing that abuse of investor trust and lack of transparency in the digital asset market can result in heavy penalties.
