This Tuesday, former SafeMoon CEO Braden John Karony was sentenced to 100 months in prison after being found guilty of defrauding thousands of investors. The U.S. Department of Justice confirmed that Karony used millions of dollars from the project’s liquidity pools to purchase mansions and luxury cars, betraying the trust of citizens and military veterans.
This case confirmed the fragility of projects that promise absolute security but maintain hidden centralized controls. Following a three-week trial, it was proven that Karony manipulated the token price and executed money laundering operations, leading to the collapse of a firm that once reached a valuation of $8 billion.
U.S. justice is expected to sentence alleged accomplice Thomas Smith and capture Kyle Nagy, who remains a fugitive. Investors should closely monitor these judicial resolutions, as they set a precedent against economic crimes that damage the stability and reputation of the digital asset market.
Disclaimer: Crypto Economy’s Flash News is prepared from official and public sources verified by our editorial team. Its purpose is to quickly report relevant facts from the crypto and blockchain ecosystem. This information does not constitute financial advice or investment recommendations. We recommend always verifying the official channels of each project before making related decisions.
