SafeMoon, the cryptocurrency that promised security and stratospheric profits. US justice, in the form of the Securities Exchange Commission (SEC) and the Federal Bureau of Investigation (FBI), now shines a spotlight allegations that call into question the honesty behind the SafeMoon project.
After the SEC information about SafeMoon, the price of SFM traded close to $0,00005772, down 71% in the last 24 hours.
What seemed to be a rocket destined for the stars may have had its launch aborted due to practices that flirt with the illegal. The creator, CEO and CTO of SafeMoon are the protagonists of this plot, accused of packaging dreams of profit in a scheme that, according to SEC, may have been built on sand foundations.
SafeMoon Crypto is Fraud to the SEC
The SEC presents a narrative of promises of a safe trip to the moon, while in reality investors watched billions in market value disappear. To add salt to the wound, it is alleged that more than 200 million dollars went from the company's coffers directly to the executives' personal luxury, in a plot worthy of a financial thriller film.
The details brought to light are breathtaking: sports cars, extravagant trips, mansions – all of this allegedly financed by a “liquidity pool” that, according to authorities, may have been more of a magic trick than a true financial safeguard. The SEC also suggests that the price of the SFM token was manipulated by executives, through a dance of transactions that could be compared to the money laundering seen in crime films.
The stains on SafeMoon's carpet had already been noticed since the sudden departure of a previous CTO, Hank Wyatt, in September 2021, raising eyebrows and questions. This early farewell cast shadows over what would have been a simple delay in the launch of a native SafeMoon wallet.
Despite the clouds forming over SafeMoon, the project persists, with roadmap updates and apparent operational normality. CEO John Karony, one of the accused, even appeared before the US Congress to discuss climate change and technology blockchain in April, perhaps in an attempt to polish the shaken image.
Following the saga, it becomes clear that the magical elixir that promised to take investors to the pantheon of profits may have just been an illusory spell. Now, with the eyes of the law focused on SafeMoon, the crypto community is watching closely, awaiting the next act of this legal opera.