📰 Table Of Contents
SafeMoon CEO Denies Crypto Fraud Charges
SafeMoon (SFM) CEO John Karony recently defended his innocence after being charged with fraud over a multi-million dollar crypto scheme last November. Here are the details:
John Karony’s Defense
On April 21, John Karony took to X (formerly Twitter) to proclaim his innocence. He stated, “I’m innocent, I didn’t commit fraud. Looking forward to this case progressing. I won’t be broken. I won’t be bullied.”
Legal Troubles
Karony, along with SafeMoon CTO Thomas Smith, faced charges for conspiracy to commit securities fraud, money laundering conspiracy, and conspiracy to commit wire fraud. The founder of SafeMoon, Kyle Nagy, was also charged but is currently at large.
Allegations Against SafeMoon Executives
Prosecutors claim that Nagy, Smith, and Karony misappropriated customer funds by diverting millions of dollars from “locked” liquidity pools for personal gain. They used the stolen funds to purchase luxury items like a custom Porsche sports car, other vehicles, and real estate.
Legal Consequences
Despite the executives growing SafeMoon’s value to over $8 billion, their alleged greed led them to spend the funds on personal desires instead of rewarding clients as promised. Ivan J. Arvelo, Special Agent in Charge of Homeland Security Investigations in New York, emphasized that their actions have consequences.
Currently, Karony is on a $3 million bail, and his court appearance date is uncertain.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
