DeFi Protocol SafeMoon Still Running Despite Securities Violations
Decentralized finance (DeFi) protocol SafeMoon has addressed the recent litigation by the United States Securities and Exchange Commission (SEC), expressing its intent to seek a resolution.
We are reviewing the recent news and we of course take these issues extremely seriously.
As we receive more information, we will do our best to address the situation as quickly as possible.
In the meantime our teams continue to build and we keep our focus on delivering for…
— SafeMoon (@safemoon) November 2, 2023
In an official statement posted on X (formerly Twitter), SafeMoon confirmed plans to review the SEC’s charge are in motion. The protocol also emphasized its ongoing commitment to prioritizing user satisfaction and advancing its vision and mission.
While SafeMoon’s dedication to its goals is commendable, the latest investigations from the SEC have substantial merit that could have a negative impact on the platform.
On November 1, the US regulator formally charged the DeFi project’s executives with fraud and for offering unregistered securities.
The individuals named in the charges include Chief Executive Officer (CEO) John Karony, Chief Technology Officer (CTO) Thomas Smith, and the project’s creator, Kyle Nagy.
Today we charged SafeMoon LLC, its creator Kyle Nagy, SafeMoon US LLC, and the companies’ CEO, John Karony, and Chief Technology Officer, Thomas Smith, for perpetrating a massive fraudulent scheme through the unregistered sale of the crypto asset security, SafeMoon.
— U.S. Securities and Exchange Commission (@SECGov) November 1, 2023
The US regulator stated that unregistered offerings lacked the disclosures and accountability the law demands.
SafeMoon (SFM) debuted in 2021 during the rise of a thriving cryptocurrency market. The
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