United

SafeMoon

<div class="coinjournal">
 <ul>
  <li>SafeMoon founders arrested; Kyle Nagy at large.</li>
  <li>The charges include wire fraud and money laundering.</li>
  <li>There are also accusations of misappropriation and investor deception.</li>
 </ul>
 <p>In a significant development, the <a rel="noopener noreferrer nofollow" title="founders" href="https://thebittimes.com/tag/founders.html">founders</a> of SafeMoon, a decentralized finance digital asset, are facing criminal <a rel="noopener noreferrer nofollow" title="charges" href="https://thebittimes.com/tag/charges.html">charges</a> in the United States.</p>
 <p>Braden John Karony and Thomas Smith have been arrested, while Kyle Nagy remains at large. The US Attorney’s Office for the Eastern District of New York has charged them with conspiracy to commit wire fraud and money laundering.</p>
 <h2 id="the-arrests-and-allegations">The arrests and allegations</h2>
 <p>Braden John Karony and Thomas Smith, two of the individuals behind SafeMoon LLC, were apprehended in Provo, Utah, and Bethlehem, New Hampshire, respectively. They are accused of participating in a scheme to de<a rel="noopener noreferrer nofollow" title="fraud" href="https://thebittimes.com/tag/fraud.html">fraud</a> investors in SafeMoon. This cryptocurrency, issued by SafeMoon LLC, gained immense popularity, with its market capitalization exceeding $8 billion.</p>
 <p>The <a rel="noopener noreferrer nofollow" title="charges" href="https://thebittimes.com/tag/charges.html">charges</a> revolve around allegations that the defendants misled SafeMoon investors. They misrepresented the accessibility of “locked” liquidity, which was supposedly beyond their reach. Furthermore, they are accused of diverting and misappropriating millions of dollars from the liquidity pool for personal gain.</p>
 <h2 id="a-background-on-safemoon">A background on SafeMoon</h2>
 <p>SafeMoon tokens (SFM) were introduced in March 2021 by SafeMoon LLC on a public blockchain.</p>
 <p>A unique feature of SFM transactions was the imposition of a 10% tax, with 5% allocated to benefit SFM holders and the other 5% to designated liquidity pools.</p>
 <p>The larger the liquidity pool, the greater the liquidity in the market for SFM. It quickly gained more than one million holders and a market capitalization of over $8 billion.</p>
 <h2 id="safemoon-founders-fraudulent-scheme">SafeMoon founders’ fraudulent scheme</h2>
 <p>The indictment as per the United States Attorney’s Office Eastern District of New York, alleges that the defendants made false representations to investors, including the use of “locked” liquidity pools to prevent rug-pulling.</p>
 <p>They also claimed that tokens in the liquidity pool wouldn’t be used for personal enrichment. However, it is alleged that the defendants maintained access to the liquidity pools and intentionally diverted and misappropriated millions of dollars’ worth of tokens for their personal benefit.</p>
 <p>Moreover, they are accused of engaging in SFM trading for their own gain, even at the peak of SFM’s market price, resulting in substantial profits. The defendants concealed the movement of these funds through various methods, including private un-hosted crypto wallets and pseudonymous centralized exchange accounts. The misappropriated funds were allegedly used to purchase luxury vehicles and real estate in different states.</p>
 <p>The <a rel="noopener noreferrer nofollow" title="charges" href="https://thebittimes.com/tag/charges.html">charges</a> in the indictment are allegations, and the defendants are presumed innocent until proven guilty in a court of law. The case is being handled by the US Attorney’s Office’s Business and Securities Fraud Section.</p>
 <p>This case highlights the importance of regulatory oversight in the cryptocurrency industry to protect investors and maintain trust in digital assets. As the legal proceedings unfold, more details will emerge, and the accused individuals will have their day in court to address these serious allegations.</p>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/safemoon-founders-arrested-on-wire-fraud-and-money-laundering-charges-tbt68710.html">https://thebittimes.com/safemoon-founders-arrested-on-wire-fraud-and-money-laundering-charges-tbt68710.html</a></p>

SafeMoon founders arrested on wire fraud and money laundering charges

Table of Contents

TheBitTimes

Other articles published on Nov 1, 2023

Aethir Joins NVIDIA Inception Program

Cardano Analyst Presents Argument For Why ADA Price Will Reach $30

Turkey nears completion of crypto rules to exit FATF’s grey list

Bitcoin Futures Open Interest Surge: Volatility Incoming?

Turkey Revamps Crypto Rules: Aiming for FATF Compliance

Hackers hijack Frax Finance DNS domain

Join our free newsletter for daily crypto updates!