2023-11-02
justice.gov/usao-edny/pr/founders-and-executives-digital-asset-company
U.S. Department of Justice
On November 1, 2023, SafeMoon’s founder Kyle Nagy, the
CEO John Karony, and CTO Thomas Smith have been
charged by the U.S. Department of Justice with running a fraud that diverted
tens of millions of investors’ funds. They have been charged with conspiring
to commit securities fraud, wire fraud and money laundering.
www.sec.gov/news/press-release/2023-229
The U.S.
Securities and Exchange Commission (SEC)
The same day
on November 1, 2023, the U.S. Securities and Exchange Commission filed civil
charges against SafeMoon LLC, its founders Kyle Nagy, SafeMoon US LLC, and
the companies’ Chief Executive Officer, John Karony, and Chief Technology
Officer, Thomas Smith, for perpetrating a massive fraudulent scheme through the
unregistered sale of the crypto asset security, SafeMoon.
In conclusion, SEC alleged SafeMoon
LLC, SafeMoon US LLC and its executive team for fraud and unregistered offering
of crypto securities.
SafeMoon CEO and CEO have been
arrested. However, the founder has not been captured yet.
SafeMoon is a DeFi protocol built on
BNB Chain such as SafeMoon Swap and SafeMoon Bridge. SafeMoon token advertise
itself as a deflationary token that has mechanism to increase the value of the token
for investors over time.
