SafeMoon CEO John Karony was officially found guilty of fraud, money laundering, and another charge by a jury in the United States on May 21, 2025. He faces up to 45 years in prison for these crimes.
This is reported by Business • Media
Scheme to Embezzle Investor Funds
In November 2023, the U.S. Securities and Exchange Commission (SEC) charged John Karony and two other top executives of SafeMoon with embezzling approximately $200 million of investor funds. It is known that in 2021, SafeMoon LLC launched a token of the same name, which peaked at a market capitalization of over $8 billion. Part of the transaction fees were allegedly locked in a special liquidity pool, but the company’s management assured investors that they did not have access to this money.
At the same time, part of the transaction fees were allegedly frozen in the liquidity pool.
However, as the investigation established, Karony and his colleagues not only had access to the funds but also repeatedly conducted transactions with the tokens, despite denying such activities on their part. According to the U.S. Department of Justice, Karony alone embezzled approximately $9 million, some of which he spent on purchasing real estate and cars.
Charged Executives and Sentences
Law enforcement was able to detain both Karony and the company’s Chief Technology Officer Thomas Smith. SafeMoon founder Kyle Negi is currently wanted. In early 2025, Thomas Smith pleaded guilty and is awaiting sentencing, which could reach 45 years. The court also ordered the confiscation of one property and about $2 million obtained from the sale of another asset related to the illegal activities of SafeMoon’s management. The whereabouts of Kyle Negi remain unknown.