SafeMoon Founders Face Accusations of Fraud and Money Laundering
Key points:
- The founders of SafeMoon are accused of fraud and money laundering.
- American authorities claim that the founders embezzled millions of dollars.
- The SafeMoon founders allegedly used the embezzled funds to purchase various personal assets.
The founders of SafeMoon, a cryptocurrency that saw a surge in value during 2021, are facing serious accusations of fraud and money laundering.
According to US authorities, Braden John Karony, Kyle Nagy, and Thomas Smith scammed investors by falsely claiming that the SafeMoon liquidity pool funds were locked and therefore inaccessible for personal use. It is important to note that SafeMoon transactions carried a 10% tax, with 5% automatically deposited into this aforementioned pool.
The accused then allegedly took advantage of their lie and the surge in SafeMoon’s value, which reached a market cap of around $8 billion in the months following its launch, to divert millions of dollars for their own benefit. Currently, only two of the accused have been arrested, while the third remains at large.
Details of a Multi-Million Dollar Scam
The founders are accused of using anonymous wallets and accounts to conceal the embezzled funds, making the transfers appear less suspicious to the community.
Furthermore, the founders allegedly used the embezzled money to purchase luxury items, including a customized Porsche 911, multi-million dollar real estate properties, and personal investments.
As alleged, the defendants deliberately deceived investors and embezzled millions of dollars to fuel their greedy scheme and enrich themselves by buying a customized sports car, other luxury vehicles, and real estate properties.
– US prosecutor Peace, stated
At present, the verdict has not been delivered by the prosecutor. However, if the allegations are proven true and/or the accused plead guilty, they could potentially face several years behind bars in addition to having to pay millions of dollars in fines.
