SEC charges SafeMoon and founders with crypto securities fraud
SafeMoon and executive team members, like Kyle Nagy, were indicted in the Eastern District of New York in connection to an international multi-million dollar fraud scheme. On Nov. 1, the U.S. Securities and Exchange Commission (SEC) charged Braden John Karony, Kyle Nagy and Thomas Smith with conspiracy, fraud and money laundering over their involvement in SafeMoon. According to the SEC, the token was offered as unregistered crypto asset securities . The three stand accused of using their roles as founder , CEO, and CTO respectively to inflate SafeMoon toward a $5.7 billion market cap through wash trading, deceptive marketing and misleading statements about liquidity lock-up timelines. Per the SEC complaint, SafeMoon’s executive team promised to take the token “Safe to the moon” while they withdrew $200 million from the project for personal expenses, such as purchasing sports cars and real estate. SafeMoon’s price exploded by over 55,000% between March and April of 2021, and su...