SafeMoon CEO Convicted of Crypto Fraud, Faces Up to 45 Years in Prison

Safemoon’s ex-CEO, John Karony, was convicted of fraud and money laundering. The jury also ordered the forfeiture of a home and $2 million from another property belonging to Karony.

After a 12-day trial, a U.S. federal jury convicted John Karony on all three criminal charges: 

• securities fraud, 
• wire fraud, 
• money laundering. 

According to the allegations, Karony and his associates misrepresented key aspects of the SafeMoon offering to investors.

John Karony Faces a Prison Sentence of up to 45 Years

In November 2023, former Safemoon executives John Karony, Kyle Nagy, and Thomas Smith were arrested for conspiring to commit a $200 million crypto fraud. The U.S. Securities and Exchange Commission charged them with misleading investors into purchasing SafeMoon (SFM) tokens and using the proceeds for personal gain.

Investigations revealed that Karony acquired over $9 million in crypto assets, which he spent on luxury vehicles and real estate, including a $2.2 million home in Utah, a $277,000 Audi R8 sports car, a Tesla, and Jeep Gladiator pickup trucks.

U.S. Attorney Joseph Nocella stated that the SafeMoon digital asset, launched in 2021, turned out to be “anything but safe.” The crypto community had previously criticized the token for failing to deliver on its promises.

Karony, however, has maintained his innocence, stating on X that he did not commit fraud. In February 2025, SafeMoon’s Chief Technology Officer, Thomas Smith, pleaded guilty and is awaiting sentencing. Kyle Nagy, who reportedly fled to Russia, is currently wanted by authorities.

SFM Price Continues to Fall 

SafeMoon (SFM) price continues to decline following the CEO’s trial. According to CoinGecko, the token is currently trading at $0.000018, down 4% in the last 24 hours. SFM has dropped 99.5% from its all-time high of $0.003 in January 2022.

With the conviction of key executives and ongoing legal troubles, a strong recovery for the SFM token seems unlikely. However, a complete collapse isn’t certain either. If the remaining SafeMoon community unites to rebuild the project, the token may still have a path forward.