SafeMoon and its executives, including CEO John Karony, have been charged by the SEC and DOJ in an alleged $200 million fraud scheme. The SEC claims that SafeMoon sold its cryptocurrency, SFM, through a fraudulent scheme and described SFM as a security asset. The SEC also alleges that SafeMoon misled users about the safety of their funds in the liquidity pool, with large portions of the funds being unlocked. The defendants are accused of misappropriating investor funds for personal use and manipulating the market. The DOJ has filed parallel criminal charges, accusing the executives of securities fraud, wire fraud conspiracy, and money laundering conspiracy. The SFM token’s market cap is disputed, with the SEC stating it reached $5.7 billion and the Attorney’s Office claiming it reached $8 billion. Two executives have been arrested, while one remains at large. The case is not related to a previous hack against SafeMoon.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	negative
Relevance Score	1
People	Kyle Nagy, John Karony, Thomas M. Fattorusso, Thomas Smith
Companies	Department of Justice (DOJ), SafeMoon LLC, SafeMoon US LLC, U.S. Securities and Exchange Commission (SEC), Binance
Currencies	SafeMoon, BNB
Securities	None