- in United States
- within Real Estate and Construction, Litigation, Mediation & Arbitration and Family and Matrimonial topic(s)
From the 2021 boom to its collapse and criminal convictions in 2025, the SafeMoon saga has involved investors around the world. The FBI is now asking victims to come forward.
In 2021, SafeMoon appeared to be one of the most promising projects in the crypto world.
Within just a few months, thousands of investors worldwide had
purchased the token, believing they were participating in an
innovative project.
Today, that same name is at the centre of one of the largest
international fraud investigations in the cryptocurrency sector,
conducted by the SEC, the U.S. Department of Justice (DOJ), and the
FBI.
Boccadutri Law Firm, leveraging its expertise in international financial fraud and crypto scams, assists investors who have suffered losses linked to SafeMoon or similar platforms.
What SafeMoon was and how it worked
SafeMoon was launched in March 2021 as a token on the BNB Chain (formerly Binance Smart Chain), promoted by SafeMoon LLC, a U.S. cryptocurrency and blockchain company.
The project, which claimed to offer a "revolutionary" token that would bring investors "Safely to the Moon," promised an innovative form of DeFi investment based on a 10% transaction fee:
- 5% was redistributed to token holders;
- the remaining 5% went to a "liquidity pool," supposedly locked to guarantee the token's value.
"Safely to the Moon" is a popular expression within the crypto community, used to describe a token expected to "skyrocket in value."
However, the token turned out to be yet another crypto speculation.
Its rise was fuelled by an aggressive marketing campaign and the support of numerous influencers.
Thanks to these celebrity endorsements, SafeMoon quickly gained widespread attention.
Unfortunately, behind the promise of passive income lay a non-transparent mechanism that led to the project's collapse and serious criminal charges for its executives.
According to the U.S. Department of Justice, SafeMoon was "a multimillion-dollar fraud scheme targeting investors."
The FBI's appeal to SafeMoon investors
The FBI's New York field office is still trying to identify potential victims of Braden John Karony (CEO), Thomas Smith (CTO), and Kyle Nagy (founder).
In February 2025, Thomas Smith pleaded guilty to conspiracy to commit securities and wire fraud, and in May 2025, Braden Karony was convicted on all charges, while their accomplice Kyle Nagy remains at large.
The FBI is asking anyone who lost money after purchasing SafeMoon tokens to come forward in order to:
- report their investment and the amount lost;
- contribute to the federal investigation;
- potentially be included in restitution procedures once the criminal trial is completed.
All victim identities will remain confidential.
Fraud and conviction of SafeMoon's founders
In November 2023, federal prosecutors announced charges against the company's top executives: Braden John Karony, Kyle Nagy, and Thomas Smith.
The charges included conspiracy to commit securities fraud, wire fraud, and money laundering through SafeMoon.
According to the SEC, they misappropriated over 200 million dollars in cryptocurrencies.
As later demonstrated in court, between March 2021 and approximately June 2022, Karony and his co-conspirators agreed to lie to SafeMoon V1 investors about whether company executives had access to the liquidity pool and whether they were using its resources for personal gain.
In December 2023, SafeMoon filed for bankruptcy under Chapter 7.
Karony and Smith were arrested following the charges, while Nagy remained at large.
The charges were filed simultaneously by the SEC and the Department of Justice, with the assistance of the FBI.
On 21 May 2025, Karony was convicted on all three charges.
SafeMoon's popularity was not based on an original project but rather on promotion by influencers who "pumped" the token, openly endorsing it and encouraging their followers to join.
Investors had been assured their money was safe thanks to a supposed locking system that would prevent any withdrawals—even by SafeMoon's own executives.
In reality, the funds were never locked, and the executives withdrew them to purchase luxury cars, homes, and holidays.
The SafeMoon timeline
March–April 2021 – Launch and media
boom
SafeMoon exploded in popularity thanks to social media and
celebrity endorsements; prices surged quickly, though the token
lacked clear utility in its early months.
December 2021 – "V2"
update
Investors were asked to migrate from SafeMoon V1 to V2,
consolidating supply and revising transaction fees.
February 2022 – First class actions over
"endorsements"
A class action lawsuit named SafeMoon and several influencers for
an alleged "pump-and-dump" scheme.
March 2023 – Liquidity pool exploit
A bug in the "burn" function allowed the withdrawal of
$8.9 million from the liquidity pool, eroding trust in the
project.
1 November 2023 – SEC and DOJ file
charges
The SEC (civil action) and the U.S. Department of Justice
(criminal, EDNY District) charged CEO Braden John Karony, CTO
Thomas Smith, and founder Kyle Nagy with misrepresenting the status
of the "liquidity pool" and diverting millions from
it.
Karony and Smith were arrested, while Nagy remained a fugitive. The
SEC also alleged wash trading practices.
December 2023 – Bankruptcy (Chapter
7)
SafeMoon US, LLC filed for Chapter 7 liquidation in the Utah
bankruptcy court.
February 2025 – CTO Thomas Smith pleads
guilty
Smith changed his plea and admitted guilt to two conspiracy counts
(securities and wire fraud).
21 May 2025 – CEO Braden John Karony convicted by
jury
A federal jury in Brooklyn found Karony guilty of conspiracy to
commit securities fraud, wire fraud, and money laundering.
(Note: The official IRS-CI page confirms the conviction and
date.)
Current status of the main figures
Karony has been convicted (pending final sentencing); Smith has
pleaded guilty; Nagy remains a fugitive according to updated FBI
reports.
What a law firm can do
A law firm can assist investors who are victims of cryptocurrency fraud, especially in cases involving companies based in the United States or with international implications.
Boccadutri Law Firm is closely following the case, offering concrete legal protection and personalised support to those affected.
Our team provides:
- tailored legal advice for those who lost funds in SafeMoon or similar projects;
- assistance with completing the FBI report form;
- coordination with U.S.-based attorneys;
- support in compensation or restitution procedures.
If you invested in SafeMoon and suffered losses, do not
remain inactive.
It is still possible to report your case to the authorities
and request legal assistance to protect your rights.
FAQ – Frequently Asked Questions
Can I report my case even if I am not a U.S. citizen?
Yes. The FBI form requires your country of residence and accepts submissions from any nation.
If I bought SafeMoon V2, can I still report it?
The FBI form primarily concerns SafeMoon V1, but it is advisable to verify your position with a lawyer.
Is there a deadline to file a report?
Currently, no deadline has been set, but prompt action is strongly recommended.
How can I know if I will be recognised as a victim?
U.S. authorities will review the information provided. Having documentation proving your purchase is essential.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
