SafeMoon founder and executives charged in multimillion-dollar international fraud scheme

The U.S. Securities and Exchange Commission (SEC) today filed a lawsuit in the District Court for the Eastern District of New York, accusing the encryption company SafeMoon LLC and its founder Kyle Nagy, SafeMoon US LLC, the company’s CEO John Karony, and Chief Technology Officer Thomas Smith of passing unregistered encryption Asset Security SafeMoon conducted a large-scale fraudulent scheme and was charged with securities fraud, wire fraud and money laundering conspiracy. The SEC noted that the defendants promised to drive token prices higher, but instead they wiped out billions in market cap, withdrew more than $200 million worth of crypto assets from projects and misappropriated investor funds for personal use. The United States Attorney's Office for the Eastern District of New York announced the arrests of John Karony and Thomas Smith earlier today. SafeMoon’s price surged more than 55,000% between March 12 and April 20, 2021, reaching a market capitalization of $5.7 billion, but when the public learned on April 20, 2021 that SafeMoon’s liquidity pool had not been used as claimed At the time of lockdown, its price plummeted by nearly 50%.