The Eastern District of New York’s Attorney’s Office and the Securities and Exchange Commission (SEC) have accused top executives of SafeMoon of defrauding investors of millions of dollars. Prosecutors revealed that the executives, who claimed they did not lock liquidity for investors, used the funds for personal luxury car and real estate purchases.
Facing Three Different Fraud Charges
According to the details of the case, Braden John Karony and Thomas Smith were arrested early today, but another executive, Kyle Nagy, remains at large. Prosecutors stated that the SafeMoon executives continued to have access to liquidity pools and used this access to spend millions of dollars for their personal luxury lifestyles.
“Three SafeMoon executives failed to deliver promised profits and misappropriated investor funds for their personal expenditures.”SEC
Finally, Eastern District U.S. Attorney Breon Peace, in a statement regarding the matter, said, “We will continue to focus on the digital asset space and bring those who defraud investors into this arena. Surrender to justice immediately.”