According to charges, the men misappropriated $200 million in investor funds to spend on a luxurious lifestyle.
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The United States Securities and Exchange Commission (SEC) announced Nov. 1 that it was charging SafeMoon and three of its executives with fraud and unregistered securities sales in connection with its SafeMoon token. The Justice Department unsealed charges against the men at the same time.
According to SEC allegations, SafeMoon creator Kyle Nagy, CEO John Karony and chief technology officer Thomas Smith withdrew assets worth $200 million from the project and misappropriated investor funds. The Justice Department is charging the men with conspiracy to commit securities fraud, conspiracy to commit wire fraud and money laundering conspiracy.
Karony and Smith have been arrested, according to the Justice Department announcement, while Nagy remains at large.
This is a developing story, and further information will be added as it becomes available.
