Safemoon founders have been arrested and charged with conspiracy to commit securities fraud, wire fraud, and money laundering. It’s everything Coffeezilla and others have been calling them out on for years and the statement from the authorities is savage. Safemoon down 50% and counting.

Authorities have arrested founders of the Safemoon project. John Karony and Thomas Smith have been arrested with Kyle Nagy in custody. The SEC have have issued a lawsuit against them which is separate from these criminal arrests by the Justice Department.

The SEC charge statement reads as such:

The SEC charges [the aforementioned names] for perpetrating a massive fraudulent scheme through the unregistered sale of the crypto asset security, SafeMoon. The SafeMoon complaint alleges that “the Defendants promised to take the price of the token “Safely to the moon,” but instead of delivering profits, they wiped out billions in market capitalization, withdrew crypto assets worth more than $200 million from the project, and misappropriated investor funds for personal use.”

The statement then goes on to point out that everything the Coffeezilla video mentioned, such that the Defendants promised money was locked into the liquidity pool but instead they withdrew and misappropriated customer funds to purchase “to purchase McClaren cars, extravagant travel, luxury homes, and other things.”

Of course, we know that Safemoon was a scam from the beginning as they did the most sketchy things like launching a V2 to give investors hope the project wasn’t dead, many false promises of a Safemoon card and other deceitful expansions, called everything that critiqued the project FUD, staged a visit to Washington DC and took a few photos in front of a flag and spoke to no one, a infeasible “windmill project” in Gambia, funnelling customer money into their own company and stated customers have no claim or share in that company, utilized username/passwords to access customer accounts even though this is crypto, created a false patent that was a step backward in technology, faked the location of company headquarters that was revealed to be a shack in an empty field in the middle of no where, the infamous “hack” that definitely wasn’t done by insiders etc etc etc.

This arrest has been a long time coming. Safemoon price is now down 50% and will probably go to zero.