The US Department of Justice and Securities and Exchange Commission sued the founders of the the crypto token SafeMoon in federal court in Brooklyn, alleging that they defrauded investors in the once-popular token. Prosecutors said that they diverted and misappropriated millions of dollars’ worth of SafeMoon.Lawyers for the defendants — Thomas Smith, Kyle Nagy, and Braden Karony — did not immediately reply to a request for comment on the suits.SafeMoon was a major beneficiary of the cryptomania of 2021. The token was created by Karony and two of his fellow developers from TANO, a Provo, Utah-based video game studio with a bare-bones website. It launched with a giveaway of 100 billion tokens (then trading for less than $0.00000001 each) for “lucky winners” who followed @safemoon, liked and retweeted then tagged three friends.Read More: Crypto SafeMoon’s Rules to Tamp Down Selling Raise Red Flags
