SafeMoon Execs Arrested by DOJ in Fraud Investigation, Charged By SEC.

SafeMoon's CEO and chief technology officer were arrested, accused of withdrawing more than $200M to buy luxury cars and homes from funds that they told investors were "locked," according to the DOJ and the regulator

The U.S. Department of Justice (DOJ) has arrested and charged SafeMoon's executive team with perpetrating a massive fraud on its investors in a case also targeted Wednesday by the Securities and Exchange Commission (SEC).

SafeMoon CEO John Karony and Chief Technology Officer Thomas Smith were arrested, and creator Kyle Nagy remains at large, according to the DOJ. The SafeMoon executive team withdrew more than $200 million from the project, as detailed in the SEC’s complaint, and they misappropriated investors funds for personal use, authorities said.