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Restitution Hearing Crucial for Convicted SafeMoon CEO
Expert testimony and sophisticated legal arguments can significantly reduce restitution obligations for fraud defendants.
Apr. 20, 2026 at 8:30am
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A restitution hearing for a convicted cryptocurrency fraud case requires meticulous preparation and evidence to reduce the defendant's long-term financial obligations.NYC TodayFormer SafeMoon LLC CEO Braden Karony will appear in Brooklyn federal court on April 23 for his restitution hearing, three months after receiving a 100-month sentence for misappropriating more than $200 million from approximately 90,000 investors. The restitution hearing will determine Karony's financial obligations until death, which he cannot discharge through bankruptcy. Defense attorneys who systematically prepare for these hearings can often reduce restitution obligations by 30-50% through expert analysis, documentation of victim payments, and evidence of third-party liability or temporal limitations.
Why it matters
Restitution hearings operate under different rules than sentencing, with the government bearing the burden of proof by preponderance of evidence. This provides opportunities for the defense to challenge victim identification, loss calculations, and the scope of the defendant's involvement. However, many defense attorneys treat restitution hearings as a formality rather than an adversarial contest, leading to higher restitution obligations that can financially devastate defendants for decades.
The details
Federal restitution hearings require the government to establish which of the estimated 90,000 SafeMoon investors qualify as 'victims' under the law, what losses are directly attributable to Karony's conduct versus market forces, and how to trace funds through cryptocurrency wallets and exchanges. These questions require expert testimony and sophisticated legal argument. The defense can challenge victim identification, contest the temporal scope of the offense, and argue for mitigation of loss. Presenting systematic evidence and negotiating a favorable payment schedule can significantly reduce the defendant's long-term financial obligations.
- Karony was sentenced to 100 months in prison in February 2026.
- The restitution hearing is scheduled for April 23, 2026.
The players
Braden Karony
Former CEO of SafeMoon LLC, who was convicted of misappropriating more than $200 million from approximately 90,000 investors in his digital asset company.
Joseph De Gregorio
Founder and president of the Sentencing Advocacy Group, a federal sentencing reduction and early release consultancy, who has experience in over 450 federal cases.
What they’re saying
“Unlike sentencing, where guidelines constrain judicial discretion, MVRA restitution determinations involve fact-finding where defendants can present evidence, cross-examine government witnesses, and challenge prosecution methodology.”
— Joseph De Gregorio, Founder and President, Sentencing Advocacy Group
“From my experience in more than 450 federal cases, defendants who present systematic evidence at restitution hearings achieve substantially lower obligations than those who appear unprepared.”
— Joseph De Gregorio, Founder and President, Sentencing Advocacy Group
What’s next
Karony is appealing his May 2025 conviction on crypto fraud charges, and the restitution hearing will determine his financial obligations until death.
The takeaway
The SafeMoon restitution hearing will demonstrate the importance of comprehensive defense representation beyond just the sentencing phase. Attorneys who invest the same rigor into restitution hearings as they do for sentencing can significantly reduce their clients' long-term financial obligations and improve their chances of early release and successful reintegration.
