The US government has formally arrested the founders of the SafeMoon crypto token, John Karony, Kyle Nagy, and Thomas Smith. Moreover, the Department of Justice (DOJ) apprehended the crypto company executives following US Securities and Exchange Commission (SEC) charges issued earlier Wednesday.
According to an official release from the US Attorney’s Office of the Eastern District of New York, the executives have been charged in a “multi-million dollar international fraud scheme.” Indeed, Nagy, Karony, and Smith were the company’s founder, CEO, and chief technology officer, respectively.
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Executives and Founders of SafeMoon Arrested
Earlier today, the SEC announced charges against the executive team behind SafeMoon. The charges were connected to the defrauding of investors and the misappropriation of funds. Subseuqnlety, the founders of the crypto token, are set to be apprehended by authorities.
The US government has officially arrested the founders of the SafeMoon crypto token. According to a statement from the US Attorney’s Office, the executives had orchestrated a massive fraud scheme that “misappropriated millions of dollars of investor funds” for personal use.
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The release notes that the three founders used the funds to “purchase luxury vehicles, real estate, and personal investments.” Additionally, Karony, Nagy, and Smith are charged with “conspiracy to commit securities fraud, conspiracy to commit wire fraud, and money laundering” for their role in the scheme.
The release echoes sentiments expressed by the SEC regarding false claims made by SafeMoon executives regarding locked liquidity. Conversely, of the three, the report states that Nagy is still at large. However, Karony and Smith were both apprehended earlier today.