SFM, the native cryptocurrency of SafeMoon, has experienced a significant price drop of 65% in just one day. This decline comes after the arrest of the project’s founders, John Karony, Kyle Nagy, and Thomas Smith, on fraud charges. The price of SFM plummeted from $0.0002025 to $0.0000718 as investors rushed to sell their holdings in a panic. This recent crash adds to the total year-to-date losses of approximately 80%.The US Department of Justice (DOJ) has charged the SafeMoon executives with orchestrating a major fraud against the project’s investors. The charges include conspiracy to commit securities fraud, conspiracy to commit wire fraud, and money laundering conspiracy. The DOJ alleges that the accused individuals illegally misappropriated funds from the company for personal use, purchasing luxury vehicles, real estate, and other extravagant items.In addition to the DOJ charges, the US Securities and Exchange Commission (SEC) has also brought charges against the SafeMoon executives. The SEC accuses them of misleading customers and misappropriating millions of dollars of investor funds. The agency claims that instead of delivering profits as promised, the defendants caused significant losses in market capitalization and withdrew over $200 million in crypto assets from the project. The SEC is also investigating whether the sale of the SFM token violated any laws regarding unregistered securities.This case against SafeMoon executives bears resemblance to the ongoing case against Sam Bankman-Fried, the former head of the now-defunct crypto exchange FTX. The accusations against the SafeMoon executives are based on the Securities Act of 1933 and the Securities Exchange Act of 1934.Overall, the arrest of the SafeMoon executives and the charges brought by the DOJ and SEC have had a detrimental impact on the price of SFM and have raised serious allegations of fraud and misappropriation of funds. The future of SafeMoon remains uncertain as the legal proceedings unfold.

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Information	Details
Geography	North America
Countries
Sentiment	negative
Relevance Score	1
People	Kyle Nagy, John Karony, Thomas Smith
Companies	SafeMoon, US Department of Justice, US Securities and Exchange Commission
Currencies	None
Securities	None