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US Government Arrests SafeMoon Founders on Multi-Million Dollar Fraud Charges


On Wednesday, the United States government formally apprehended the creators of the SafeMoon cryptocurrency token, namely John Karony, Kyle Nagy, and Thomas Smith. These arrests follow the charges issued by the U.S. Securities and Exchange Commission (SEC) against the cryptocurrency's executive team.

According to the statement released by the U.S. Attorney's Office in the Eastern District of New York, these executives have been accused of participating in a "multi-million dollar international fraud scheme." It's worth noting that Nagy, Karony, and Smith held key positions within the company, serving as its founder, CEO, and chief technology officer, respectively.

Earlier in the same day, the SEC announced the charges against the executive team behind SafeMoon, which revolved around investor fraud and the misappropriation of funds. Consequently, the founders of the cryptocurrency token are now in custody of U.S. authorities.

As per the U.S. Attorney's statement, the executives were allegedly involved in a wide-ranging fraud scheme that "misappropriated millions of dollars of investor funds for personal use." The statement also emphasizes that the trio used these funds to acquire luxury vehicles, real estate, and personal investments. Furthermore, Karony, Nagy, and Smith are facing charges of "conspiracy to commit securities fraud, conspiracy to commit wire fraud, and money laundering" in connection with their roles in this scheme.

The official statement echoes the concerns voiced by the SEC regarding false claims made by SafeMoon executives concerning locked liquidity. It is noteworthy that, of the three individuals accused, Kyle Nagy remains at large, while John Karony and Thomas Smith were apprehended by U.S. authorities during the course of the day.

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