FBI Initiates Safemoon Victim Appeal: Will SFM Investors Reclaim Their Funds?

The FBI’s New York division is encouraging SafeMoon investors who experienced financial losses to step forward as part of a federal probe into one of DeFi’s most notorious scams.

In May 2025, former SafeMoon CEO Braden John Karony was found guilty on charges related to conspiracy for securities fraud, wire fraud, and money laundering. Prosecutors asserted that Karony and his associates deceived investors during the 2021–2022 bull crypto market, making false assertions regarding executive access to SafeMoon’s market fluidity pool and the use of those funds.

Karony and accomplice Kyle Nagy (who is still at large) misappropriated millions from SafeMoon’s market fluidity pool. If you are among the numerous victims pursuing justice, here’s how you can get involved:

Were You Scammed by SafeMoon? Seek Justice Here

The FBI is currently requesting SafeMoon V1 investors to fill out a victim impact form. The information provided will assist federal agents in gauging the extent of losses, assessing eligibility for restitution, and potentially reaching out to victims for further information.

You can register to seek justice against SafeMoon here.

The Bureau indicates: Victims might be entitled to “certain services, restitution, and rights under federal and/or state law.”

I lost over $5,000 on your scam crypto token

— Muller17 (@Bid1784) September 10, 2025

All submitted information will be kept private, with voluntary disclosures aiding the investigation.

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SafeMoon’s Ascent and Decline: How Did This Scam Emerge?

SafeMoon epitomized the 2021 “meme coin” craze. It actually predates the official memecoin trend that followed three years later. Marketed as a community-oriented token with “automatic liquidity,” it capitalized on the retail excitement alongside Dogecoin and Shiba Inu. At its zenith, SafeMoon attained a brief multibillion-dollar crypto market valuation.

However, in contrast to projects such as EOS or Tron, which, despite their flaws, have formal development support, SafeMoon lacked substantial technical foundation. It was largely driven by viral trends and intense social media advertising.

As one early critic in the SafeMoon subreddit remarked: “SafeMoon was so obviously developed by a few idiots I couldn’t believe my eyes when I witnessed individuals passionately echoing the complete nonsense claims,” the user stated.

“There were so many safemoon proponents when the daily thread was racking up 20k + comments daily lol.” – Reddit user

While precise numbers differ, on-chain data indicates that SafeMoon’s market capitalization reached nearly $6 billion in spring 2021 before plummeting by over 95% within the year. CoinGlass data shows that daily trading volume once surpassed $500 million but has since dwindled to insignificant levels.

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SafeMoon V2 and Will Justice Be Served by the FBI?

Unsurprisingly, there’s a new iteration of SafeMoon, Safemoon V2, but trust in anything remotely tied to the scam is nonexistent. More broadly, the SafeMoon incident highlights regulators’ increasing readiness to go after centralized exchanges and token creators.

Karony’s conviction, along with ongoing probes into Nagy and Smith, concludes a chapter on one of the most notorious projects in crypto. Yet, the call for victims also prompts the question: how many other meme coins from the 2021 hype will ultimately face similar levels of scrutiny?

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