U.S. Officials Take SafeMoon Cryptocurrency Founders into Custody

Written by Marty Byrde

11/02/23

The U.S. government has taken official action against the creators of the SafeMoon cryptocurrency, notably John Karony, Kyle Nagy, and Thomas Smith. This move followed accusations from the U.S. Securities and Exchange Commission (SEC) that surfaced earlier in the day. A detailed statement from the U.S. Attorney’s Office of the Eastern District of New York reveals that these key figures have been implicated in an extensive "fraudulent scheme that diverted millions from investors." Karony, Nagy, and Smith held pivotal roles as the company’s CEO, founder, and CTO, respectively. The disclosure indicates that the trio misused the collected funds for personal extravagances, including high-end cars, properties, and other personal ventures. Charges against them encompass "conspiracy to commit securities fraud, wire fraud conspiracy, and money laundering" in relation to their involvement. The SEC's concerns revolved around misleading statements by SafeMoon regarding liquidity guarantees. While the document mentions Karony and Smith were detained on Nov 1, 2023, Nagy remains elusive.