A federal court in Brooklyn has sentenced Braden John Karony, former CEO of SafeMoon US LLC, to 100 months (over eight years) in prison for his role in a deceptive cryptocurrency scheme. The sentencing, delivered on February 10, 2026, follows Karony's conviction in May 2025 on charges of conspiracy to commit securities fraud, wire fraud, and money laundering. Prosecutors detailed how Karony and associates orchestrated a scheme that diverted more than $9 million from investor contributions, using the funds for personal luxuries like high-end vehicles and real estate.
The SafeMoon project, which emerged during the 2021 DeFi boom, marketed its native token with promises of secure "reflection" mechanisms and locked liquidity pools to prevent rug pulls. However, investigations revealed these assurances were false. The group maintained covert control over substantial token holdings, manipulated the market through promotional hype and celebrity endorsements, and then secretly sold their shares, causing the token's value to plummet and inflicting significant losses on thousands of investors. Karony was also ordered to forfeit approximately $7.5 million in ill-gotten gains and two properties.
In a separate but related development, a U.S. federal judge in the Central District of California has sentenced Daren Li to the statutory maximum of 20 years in prison for his involvement in a sophisticated "pig butchering" money laundering operation. The scheme, which originated from scam centers in Cambodia, defrauded American victims out of over $73 million. Perpetrators built trust with targets via social media and dating apps before luring them into fake cryptocurrency trading sites.
Li played a pivotal role in laundering the proceeds, instructing accomplices to set up U.S. bank accounts under fictitious names to receive wire transfers, which were then funneled into cryptocurrency wallets under his control, often using Tether (USDT). Li was arrested in May 2024 and pleaded guilty in November 2024, but fled custody in December 2025 by severing his electronic ankle monitor. The court proceeded with sentencing in absentia on February 10, 2026. Li also faces three years of supervised release upon capture. Eight co-conspirators have already pleaded guilty, with co-defendant Yicheng Zhang receiving a 46-month sentence in January 2026.
Officials from the U.S. Attorney's Office emphasized that these outcomes send a clear message against exploiting emerging technologies for personal gain. The cases underscore the persistent risks in the crypto space and highlight ongoing efforts by U.S. authorities to combat cross-border financial fraud and enforce accountability, potentially prompting stronger regulatory oversight.
