Law enforcement agencies arrested the leaders of the cryptocurrency company SafeMoon. Top management of the company accused in the misappropriation of investor funds in the amount of more than $200 million.
The US Securities and Exchange Commission (SEC) brought charges against SafeMoon founder Kyle Nagy, CEO John Caroni and CTO Thomas Smith. According to the SEC complaint, they created a fraudulent scheme through the unregistered sale of the SafeMoon token (SFM).
The source claims that the company’s management promised investors multiple growth of the native SafeMoon coin. Instead of ensuring profit, they withdrew more than $200 million in investor assets from the project and used them for personal purposes, the regulator said in a statement.
According to the Commission, Kyle Nagy was able to convince investors that the funds were securely locked and could not be withdrawn from the liquidity pool by anyone, including the firm’s executives. The defendants embezzled millions of dollars and spent them on McClaren cars, travel, luxury homes and other items, the regulator alleges.
The SEC statement said that from March 12 to April 20, 2021, the price of the SafeMoon asset increased by more than 55,000% and reached a market capitalization of over $5.7 billion. At the time of publication, the asset is trading at $0.000083. Over the past 24 hours, the value of the token has fallen by 58%, according to data CoinGecko.
According to information Coindesklaw enforcement authorities have arrested the company’s CEO and CTO, while Kyle Nagy is wanted.
Source: Cryptocurrency
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