#Safemoon LLC, its creator Kyle Nagy, #SFM US LLC, CEO John Karony, and Chief Technology Officer Thomas Smith have all been charged by the U.S. Securities and Exchange Commission (SEC) for engaging in a massive fraudulent scheme through the unregistered sale of the #crypto asset security, SafeMoon.
According to the SEC, SafeMoon's price increased by over 55,000 percent between March 12 and April 20, 2021, reaching a #cryptocurrency market capitalization of over $5.7 billion before a nearly 50% decline in value occurred on April 20, 2021, when the public discovered that SafeMoon's liquidity pool was not locked as claimed.
Karony and Smith are accused of using embezzled funds to make substantial acquisitions of SafeMoon following this decline in order to boost the company's value and market manipulation.
According to the SEC's complaint, the defendants broke Rule 10b-5 under the Securities Exchange Act of 1934, as well as Sections 5 and 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act.
Additionally, according to the #cryptonews , Karony, Smith, SafeMoon LLC, and SafeMoon US LLC violated Exchange Act Section 9(a)(2).