Safemoon price plummets 50% after executives arrested on fraud charges

The US government has charged executives of SafeMoon cryptocurrency over allegations of “conspiracy to commit securities fraud, conspiracy to commit wire fraud and money laundering.” The arrest of the Safemoon executives came after the US Securities and Exchange Commission (SEC) unveiled charges against them on Wednesday morning.

The indictment of John Karony, Kyle Nagy, and Thomas Smith was unsealed on Wednesday, highlighting the Safemoon executives’ role in defrauding investors in a multi-million dollar scheme.

Safemoon executives arrested

According to a press release published by the US Attorney's Office, Eastern District of New York, both Karony and Smith have been arrested. Nagy however was still at large by the time of going to press.

Ivan J. Arvelo, Special Agent in Charge of Homeland Security Investigations, New York, said in a statement:

Earlier the SEC had charged Safemoon creator Kyle Nagy, CEO John Karony, and Chief Technology Officer Thomas Smith with fraud and unregistered securities offering.  

The price of Safemoon (SFM) plummeted after the news, with the token crashing by more than 50% to $0.00009142.