Karony used the stolen proceeds to purchase a $2.2 million home in Utah, an Audi R8 sports car, a Tesla, a custom Ford F-550 and Jeep Gladiator pickup trucks.
“Karony lied to investors from all walks of life — including military veterans and hard-working Americans,” US Attorney Joseph Nocella, Jr. said, adding:
“Today’s sentence demonstrates that there are significant consequences for financial crimes. Our Office will continue to vigorously prosecute economic crimes that harm investors and weaken societal trust in the stability and security of digital asset markets.”
Source: Ariel Givner
Karony was ordered to forfeit approximately $7.5 million, the Department of Justice said, while the amount of restitution to the victims will be determined at a later date.
Two SafeMoon execs convicted, one at large
SafeMoon’s former chief technology officer, Thomas Smith, pleaded guilty in February 2025 to conspiracy to commit securities and wire fraud and is awaiting sentencing.
SafeMoon platform’s creator, Kyle Nagy, remains at large, the DOJ added.
Karony is one of many former crypto executives who have now been convicted and sentenced for crimes committed during the 2021-2022 market cycle, when retail market participation was at its peak.
Others who have been convicted include former FTX CEO Sam Bankman-Fried and former Celsius CEO Alex Mashinsky, who are currently serving 25-year and 12-year sentences, respectively.
US President Donald Trump said on Jan. 8 that he wouldn’t pardon the former FTX boss, despite having pardoned former Binance CEO Changpeng “CZ” Zhao in October.
Bankman-Fried hasn’t given up, having asked a federal appeals panel for a new trial on Thursday.
cointelegraph.com
