SafeMoon Executives Face SEC Charges for Fraud and Misuse of Investor Funds
Summary:
The U.S. Securities and Exchange Commission (SEC) and the Justice Department have charged SafeMoon and three executives with fraud, unregistered securities sales, and misuse of investor funds in relation to its SafeMoon token. Founder Kyle Nagy, CEO John Karony, and CTO Thomas Smith are accused of withdrawing $200 million from the project. Karony and Smith are currently in custody, while Nagy remains elusive.
On November 1, the U.S. Securities and Exchange Commission (SEC) declared they were levying fraud and unregistered securities sales charges against SafeMoon and three of its top members in relation to its SafeMoon token. Simultaneously, these charges against the individuals were made public by the Justice Department. It is alleged by the SEC that Kyle Nagy, the founder of SafeMoon, along with CEO John Karony and chief technology officer Thomas Smith, withdrew a staggering $200 million from the project, consequently misusing investor funds. Conspiracy to commit securities fraud, conspiracy to commit wire fraud and a conspiracy to launder money are the charges listed by the Justice Department against these individuals. The announcement by the Justice Department reveals that Karony and Smith have been detained, whereas Nagy is still on the run. More details on this unfolding story will be communicated as they become known.
Published At
11/1/2023 5:28:45 PM
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