Reported: SafeMoon SFM (Token)
Compiled by ScamMarketCap from public recordsHappened Nov 1, 2023United States
SafeMoon was a crypto token launched in March 2021 that charged a 10% fee on every trade, half of it sent to liquidity pools that investors were told were locked. Its market value rose above $5.7 billion within weeks. The SEC alleged that large parts of the pool were never locked, that the defendants withdrew crypto assets worth more than $200 million and that investor funds were spent on cars, travel and homes.
In November 2023 the SEC sued and federal prosecutors in Brooklyn charged chief executive Braden John Karony, creator Kyle Nagy and technology chief Thomas Smith. Smith pleaded guilty in February 2025. A jury convicted Karony of conspiracy to commit securities fraud, wire fraud and money laundering in May 2025, and in February 2026 he was sentenced to 100 months in prison and ordered to forfeit about $7.5 million. Nagy remains at large and is believed to be in Russia.
Restitution to victims was left to be determined later.
This case file is compiled from public records and established reporting. Status as of the last update, Nov 1, 2026.
Case files summarize court records, regulator actions and established reporting.
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