Key Takeaways:
- The Federal Bureau of Investigation (FBI) is asking SafeMoon victims to complete a confidential questionnaire to assist with the investigation.
- This request follows the conviction of CEO Braden Karony in May of 2025 for conspiracy to commit securities fraud, wire fraud, and money laundering.
- Victims could be entitled to some services or restitution, although the amount available to recover is quite unknown.
Table of Contents
Justice in Motion for Safemoon Victims
In a substantial effort to achieve justice, the FBI’s New York Field Office has put out a stake for SafeMoon victims. This follows a court verdict where Karony and the co-conspirators were found guilty of running an elaborate scheme, misleading the investors about the viability of the project’s liquidity pool. While Karony was convicted and co-conspirator Thomas Smith pleaded guilty, a third defendant, Kyle Nagy, remains a fugitive.
Coming Forward and What Happens Next
An online questionnaire specifically targeted for SafeMoon victims is available to determine exactly how many people incurred losses buying SafeMoon V1 tokens. It is voluntary to provide information, but it is important to help the FBI officially establish victims, get a clearer picture of the overall damage, and determine if victims will be eligible for restitution, which is a court-ordered payment made from the defendant to the victim for the loss incurred. All identities are kept confidential.
Read also: Venus Protocol Recovers $13.5M in Dramatic Phishing Attack Reversal
A Cautionary Tale for Crypto
The SafeMoon incident will go down as one of the more notorious incidents of “memecoin” mania from the 2021 bull run, where the asset peaked near a $6 billion market cap before it collapsed.
The FBI’s proactive action to identify victims is an important marker of the accelerating maturity of regulatory and law enforcement strategies to seek justice in the crypto space, not only to charge perpetrators, but to help the victims.
A Way Forward for Possible Recovery
For victims who lost their funds, this action by the FBI presents a somewhat uncommon way to seek a refund from an industry that has been criticized for a failure on the part of consumer protection. While the amount of recoverable funds is unknown, coming forward as Safemoon victims is the first step to possibly receive restitution and be formally acknowledged in the federal case.
Final Thought: As regulators close in on past crypto scams, does this mark a new era of investor accountability in the digital asset space?
FAQs
What is restitution?
Restitution refers to a court order requiring a convicted defendant to pay money to the victim for the financial losses caused by the crime.
Do I need proof of my investment?
While helpful, you should fill out the form regardless. The FBI will use the information to identify victims and may contact you later for additional details.
Is SafeMoon V2 part of this?
No, this investigation specifically concerns the original “SafeMoon V1” token and the fraudulent actions of its founders.
For more crypto fraud stories, read: Seoul Police Dismantle $30M Crypto Korean Hacking Organization with Chainalysis
