SafeMoon
A BNB Chain token (2021) whose leaders, per the SEC/DOJ, falsely told investors the liquidity pool was 'locked' while retaining access and misappropriating assets worth more than $200M. CEO convicted in 2025.
Also known as: SafeMoon, SFM
Summary
SafeMoon was a BNB Chain token launched in March 2021. The SEC and DOJ said its leaders falsely assured investors that the project's liquidity pool was "locked" and inaccessible, while in fact they retained access and misappropriated assets worth more than $200 million. [1][2]
Mechanism
Per the SEC, large portions of the liquidity pool were never locked; executives withdrew assets for luxury cars, travel, and homes, and engaged in wash trading. The token's market capitalization exceeded $5.7 billion before collapsing. [2]
People
CEO Braden John Karony was convicted in May 2025 and sentenced to 100 months in prison; CTO Thomas Smith pleaded guilty; founder Kyle Nagy remained at large per reporting. [1][2]
Bracketed numbers refer to the numbered sources listed below.
People & entities involved
- Braden John KaronyCEOIndividualsCEO of SafeMoon. Convicted by a federal jury in May 2025 of securities fraud, wire fraud, and money laundering, and sentenced to 100 months in prison.
- Thomas SmithCTOIndividualsChief technology officer of SafeMoon. He pleaded guilty in February 2025 to conspiracy to commit securities fraud and wire fraud over the scheme that misappropriated investor funds from the SafeMoon token's 'locked' liquidity; he is awaiting sentencing.
- Kyle NagyFounder
Sources (2)
See also
- Bitcoin Latinum (LTNM)TokensA ~$16M token offering (SAFTs for 'Bitcoin Latinum' / LTNM) that the SEC charged in 2026 as fraud: founder Donald Basile falsely called LTNM 'the world's first insured digital asset' backed by an 'existing trust,' neither of which existed, and diverted investor funds for personal use (including a $160,000 horse).
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)Tokens
This page was last updated on Jun 8, 2026. View revision history.