SafeMoon

According to a <a href="https://www.sec.gov/news/press-release/2023-229?utm_medium=email&amp;utm_source=govdelivery">press release</a>, the Securities and Exchange Commission (SEC) has leveled charges against SafeMoon, a BNB Chain-based exchange, and its executives, Kyle Nagy, SafeMoon’s creator, John Karony, its Chief Executive Officer (CEO), and Chief Technology Officer (CTO) Thomas Smith. 
<h2 id="b-executives-involved-in-deception-and-financial-misconduct-b">Executives Involved in Deception and Financial Misconduct</h2> 
The allegations include orchestrating an extensive fraudulent scheme via the unregistered sale of SafeMoon, a crypto asset security. The SEC’s complaint contends that the accused pledged to propel the token’s price “safely to the moon”, but rather than yielding profits, they caused a substantial market capitalization loss in the billions. 
The complaint also details their actions, disclosing that they withdrew over $200 million in crypto assets from the SafeMoon project. Shockingly, the Department of Justice (DoJ) also <a href="https://www.justice.gov/usao-edny/pr/founders-and-executives-digital-asset-company-charged-multi-million-dollar">accused </a>the three individuals of diverting investors’ funds for personal use, and conspiracy to commit wire fraud, compounding the severity of the charges. This egregious misuse of resources raises concerns about the integrity and ethical standards within the crypto space. 
<h2 id="b-investors-funds-utilized-for-personal-use-b">Investors Funds Utilized for Personal Use</h2> 
Meanwhile, the complaints revealed that in a bid to market the SafeMoon token, Nagy assured investors that their funds were safely locked in safeMoon’s liquidity pool and could not be withdrawn by anyone, including the defendants. Meanwhile, the funds were not locked as the executives misused millions of dollars to purchase cars and properties, amongst many other things for themselves. 
As the legal proceedings unfold, the DoJ announced that both Karony and Smith had been arrested, leaving Nagy to remain at large. 
SafeMoon, once touted as a promising venture, is now marred by allegations of deception and financial misconduct. However, the SEC’s intervention sheds light on the need for regulatory scrutiny in the cryptocurrency realm, emphasizing the risks investors face in an industry often characterized by rapid developments and limited oversight. 
Also, this case prompts a broader conversation about the regulatory framework surrounding digital assets. Striking a balance between fostering innovation and safeguarding investors is crucial for the sustainable growth of the cryptocurrency market. 
<h2 id="b-safemoon-protocol-loses-almost-9m-to-hacker-b">SafeMoon Protocol Loses Almost $9M to Hacker</h2> 
Recall that in March, <a href="https://thecoinrise.com/safemoon-protocol-loses-almost-9-million-to-hacker/">SafeMoon announced that its liquidity pool was compromised by a hacker,</a> resulting in a loss of about $8.9 million. PeckShield, a blockchain security firm, confirmed that the exploiter used a code function to inflate the price of the SafeMoon tokens artificially. 
A month later, the developer of the protocol revealed that the firm reached an agreement with the <a href="https://thecoinrise.com/safemoon-inks-deal-with-hacker-to-return-80-of-stolen-funds/">crypto hacker to return 80% of the stolen funds to the platform</a>, while the remaining 20% will be used as a white hat bounty for the hacker. 
The post <a href="https://thecoinrise.com/safemoon-and-its-executives-charged-for-several-fraudulent-schemes/">SafeMoon and its Executives Charged for Several Fraudulent Schemes</a> appeared first on <a href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

SafeMoon and its Executives Charged for Several Fraudulent Schemes

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