Two of the most prominent crypto fraud cases in the U.S. courts moved in different directions today, 10 February.
In one case, the former chief executive of SafeMoon received a prison sentence following conviction. In another, Sam Bankman-Fried, the former head of collapsed exchange FTX, filed a fresh bid seeking to reopen his case.
SafeMoon CEO sentenced after victim testimony
A federal judge in New York sentenced John Karony, the former CEO of SafeMoon, to 100 months in prison, according to courtroom reporting by Inner City Press.
During the sentencing hearing, multiple victims described how they invested in SafeMoon after being reassured by Karony’s public statements and personal engagement with the community.
Several said the losses reshaped their financial futures, preventing home purchases and affecting education plans.
U.S. prosecutors sought a 12-year sentence, arguing Karony deliberately misled investors and showed no remorse. The defense cited his age and background to mitigate the punishment.
The judge rejected those arguments, describing the scheme as “a massive fraud” and stating it was “more like theft than fraud,” emphasizing that investors had been explicitly assured there would be no rug pull.
The sentence marks a final chapter in one of the most widely followed cases to reach U.S. courts.
SBF files long-shot motion for new trial
In a separate development, Bankman-Fried filed a pro se motion seeking a new trial on his FTX fraud conviction, according to Bloomberg.
The filing, dated 5 February and docketed Tuesday in Manhattan federal court, argues that new witness testimony could undermine the government’s case.
The request is separate from Bankman-Fried’s formal appeal. It comes after a federal appeals court rejected his attempt to secure release while that appeal is pending.
The Second Circuit ruled in December that he had not demonstrated a substantial likelihood of success.
Bankman-Fried was convicted in November 2023 on seven counts of fraud and conspiracy and sentenced in March 2024 to 25 years in prison.
Prosecutors said he misappropriated billions of dollars in FTX customer funds to support risky trading at Alameda Research, political donations, and luxury real estate purchases.
Cases enter different phases
Together, the two developments highlight how high-profile crypto prosecutions are diverging in 2026.
While the SafeMoon case has reached sentencing, delivering closure for victims, the FTX case continues to generate procedural filings as its former executive pursues post-conviction relief.
Final Thoughts
- The SafeMoon sentencing reflects courts moving toward final judgments in retail-focused crypto fraud cases.
- Bankman-Fried’s filing underscores how larger cases can remain active for years through appeals and post-conviction motions.
