SFM price drops 10% after former SafeMoon CEO found guilty in fraud case

Digital currencies traded in green on Thursday as Bitcoin traversed new all-time highs, trading at $110,601.

While altcoins followed suit with significant gains on their daily price charts, the situation was different among SafeMoon holders.

SFM painted its 24-hour chart red, losing more than 10% as the US federal jury found former SafeMoon CEO Braden Karony guilty on all three accounts: money laundering, wire fraud, and securities fraud.

The token saw a sharp decline from $0.00002112 to $0.00001889 (a 10.56% dip) after the news.

Notably, US regulators arrested SafeMoon executives in November 2023 for fraud charges.

Ex-SafeMoon CEO guilty on all criminal charges

A 12-day trial ended with the US jury convicting Braden Karony of conspiracies to commit money laundering, wire fraud, and securities fraud, facing up to a 45-year jail term.

The prosecutor alleges that Karony and his co-conspirators misled innocent investors about their access to the liquidity pool and used the assets for personal gains.

However, yesterday's press release explained:

Meanwhile, the perpetrators used the stolen funds to purchase luxury cars and invest in real estate.

Misappropriation of investor funds saw the firm filing for bankruptcy in December 2023.

With the guilty conclusion, the judge also ruled that one residential home and the sale proceeds from another, worth around $2 million, should be surrendered.  

The court has warned fraudsters who victimize crypto investors and ruin investor trust in the digital assets industry.

Such events have hindered the growth and stability of emerging technologies.

Meanwhile, Karony’s conviction represents a key moment for the SafeMoon project, which experiences turbulence as fraud allegations tarnish the $8 billion empire.

For SMF investors, the verdict has further deteriorated the already shaky confidence in SafeMoon’s future.

While Karony stepped down as CEO before the trial, the guilty conviction adds to the controversies the project has witnessed since its remarkable performance in 2021.

SFM’s price outlook

The native token exhibited significant bearishness amidst the legal development.

SFM decoupled from the ongoing broad-based rallies with a 10% dip in the past 24 hours.

It hovers at $0.00001889, with increasing daily trading volumes signaling soaring selling activities.

SafeMoon trades 83% below its 2025 high of $0.00011047, attained in early March.

Technical indicators support SFM’s short-term bearish trajectory.

For example, the MACD on the 4H chart displayed red histograms with a visible bearish crossover.

Moreover, the Relative Strength Index of 38.56 suggests more declines before the alt hits the oversold territory.

SafeMoon’s future remains uncertain. The organization hasn’t commented on the guilty conviction yet.

Enthusiasts will watch how the team will try to rescue the project and regain investor trust.