SafeMoon Founders and Executives Arrested in Multi-Million Dollar Fraud Scheme, SEC Alleges

Founders and executives of digital-asset company SafeMoon LLC, Braden John Karony, Kyle Nagy, and Thomas Smith, have been charged with conspiracy to commit securities fraud, wire fraud, and money laundering for defrauding investors in their decentralized finance digital asset called "SafeMoon." The defendants allegedly misled investors about the accessibility of locked liquidity and their personal holdings and trading of SafeMoon. As SafeMoon's market capitalization reached over $8 billion, the defendants diverted and misappropriated millions of dollars' worth of locked SafeMoon liquidity for personal gain. Karony and Smith have been arrested, while Nagy remains at large.