Safemoon CEO John Karony is found guilty of three major crypto fraud charges and could face 45 years in prison. The US Department of Justice (DOJ) has announced that the Brooklyn federal ju judge has been guilty of misappropriation of investor funds, money laundering, lying about locked liquidity and looting investor funds.
Karony and other Safemoon officials are found guilty of all charges of crypto fraud. They have been accused of deceiving Safemoon investors for the project’s liquidity pool. Executives lied that they had no access to liquidity pools and claimed they were decentralized. However, they accessed funds, used liquidity pools and washed the money for personal gain.
Safemoon CEO John Karony faces up to 45 years of prison for Crypto scams
The CEO also used the diverted funds to purchase residential properties worth millions of dollars. “The defendant agreed to his co-conspirators to lie to Safemoon investors about whether Safemoon executives have access to the liquidity pool and whether they are using liquidity pool assets for personal gain.” I wrote DOJ.
DOJ explained that Safemoon executives diverted their funds from the liquidity pool as their market capitalization reached $8 billion. “Safemoon’s market capitalization has increased to over $8 billion.. The defendant misappropriated and diverted millions of dollars worth of liquidity from the Safemoon liquidity pool for personal gain. ”
The case was tried in court for 12 days before the ju trial ruled Wednesday. The CEO is currently facing up to 45 years of prison. “When sentenced to prison, Kalanie faces up to 45 years’ prison. The ju apprentice issued a verdict to confiscate the proceeds from the sale of one residential property and another residential property. The Department of Justice pointed out.
