An indictment charging SafeMoon executives with defrauding investors via their SafeMoon token was unsealed in the Eastern District of New York. Three defendants were charged with conspiracy to commit securities fraud, conspiracy to commit wire fraud and money laundering conspiracy for their roles in creating Safemoon, a crypto token that once boasted a “market cap” of around $8 billion.
SafeMoon, which promised buyers it would “safely go to the moon” by locking the liquidity pool so that its developers couldn’t rug pull. In reality, the “locking” didn’t prevent the developers from removing tokens from the liquidity pool in other ways, which they did to the tune of millions of dollars. They then spent the proceeds of their crimes on personal expenses, like luxury sports cars and real estate.
Alongside the charges from the Department of Justice, the Securities and Exchange Commission simultaneously brought a lawsuit against the SafeMoon executives for violating registration and anti-fraud provisions of securities laws.
This content was sourced from Web3IsGoingGreat
