A New York jury has convicted former SafeMoon CEO John Karony on all charges in a crypto fraud case.
The verdict came quickly—just hours after a two-week trial where Karony insisted he was innocent.
He was found guilty of three major crimes: conspiracy to defraud the U.S., wire fraud, and money laundering.
The trial began on May 5, and the jury delivered their decision on May 21.
Karony and two others—ex-CTO Thomas Smith and SafeMoon creator Kyle Nagy—were accused in 2023 of stealing millions in investor funds.
Smith testified against Karony in court. Nagy? He ran off to Russia and hasn’t been caught.
The case grabbed attention as a test of how U.S. courts will treat crypto fraud under Acting U.S. Attorney Joseph Nocella. He started the job the same day the trial began.
Karony could now face serious jail time. Smith may get off easier after pleading guilty and working with prosecutors.
This trial follows big crypto scandals. Celsius CEO Alex Mashinsky got 12 years. FTX’s Sam Bankman-Fried? A whopping 25.
footnote:
Wire fraud: Using tech (like email or phone) to cheat people out of money.
Money laundering: Hiding money made from crimes.
Conspiracy to defraud: Planning with others to trick the government.