The FBI’s New York workplace is urging SafeMoon traders who misplaced cash to come back ahead as a part of a federal investigation into one of many DeFi’s most notorious frauds.
In Might 2025, former SafeMoon CEO Braden John Karony was convicted on fees of conspiracy to commit securities fraud, wire fraud, and cash laundering. Prosecutors mentioned Karony and his companions misled traders all through the 2021–2022 bull run, together with false claims about government entry to SafeMoon’s liquidity pool and the way these funds had been getting used.
Karony and co-conspirator Kyle Nagy (nonetheless at giant) diverted tens of millions of {dollars} from SafeMoon’s liquidity pool. Should you’re one of many many victims in search of justice, right here’s how:
Did SafeMoon Rip-off You? Stand Up For Justice Right here
The FBI is now asking SafeMoon V1 traders to finish a sufferer impression type. Responses will assist federal investigators assess the scope of damages, decide restitution eligibility, and doubtlessly contact victims for follow-up.
You possibly can join justice towards SafeMoon here.
In accordance with the Bureau: Victims might qualify for “sure providers, restitution, and rights underneath federal and/or state legislation.”
I misplaced over $5,000 in your rip-off coin
— Muller17 (@Bid1784) September 10, 2025
All data submitted will stay confidential, with voluntary disclosures aiding the federal investigation.
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SafeMoon’s Rise and Collapse: How Did This Rip-off Get So Huge?
SafeMoon was emblematic of the 2021 “meme coin” mania. It truly predated the formal memecoin wave that might come three years later. Promoted as a community-driven token with “automated liquidity,” it rode the retail wave alongside Dogecoin and Shiba Inu. At its peak, SafeMoon briefly reached a multibillion-dollar market capitalization.
Nevertheless, not like initiatives resembling EOS or Tron, that are flawed however backed by formal growth groups, SafeMoon had little technical depth. It was constructed round viral hype and aggressive social media advertising.
As one early critic within the SafeMoon subreddit recalled: “SafeMoon was so clearly developed by just a few shitheads I couldn’t consider my eyes after I noticed folks emphatically repeating the entire nonsense claims,” the person wrote.
“There have been so many safemoon shills when the every day thread was hitting 20k + feedback every day lol.” – Reddit user
Whereas precise figures range, on-chain evaluation exhibits that SafeMoon’s market cap peaked close to $6 Bn in spring 2021 earlier than collapsing by over 95% inside a yr. CoinGlass knowledge means that every day buying and selling quantity as soon as exceeded $500 Mn however is now negligible.
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SafeMoon V2 and Will the FBI Ship Justice?
Expectedly, there’s a brand new SafeMoon undertaking, Safemoon V2, however no person trusts any undertaking that’s even vaguely related to the rip-off. Extra broadly, the SafeMoon case alerts regulators’ rising willingness to focus on centralized exchanges and token issuers.
Karony’s conviction, paired with ongoing investigations into Nagy and Smith, closes a chapter on certainly one of crypto’s most notorious initiatives. However the name for victims additionally raises the query: what number of different meme cash from the 2021 frenzy will ultimately face comparable scrutiny?
EXPLORE: Did Dogecoin ETF Just Change Everything For Meme Coins?
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Key Takeaways
- The FBI’s New York workplace is urging SafeMoon traders who misplaced cash to come back ahead towards one of many greatest frauds in DeFi.
- Expectedly, there’s a brand new SafeMoon undertaking, Safemoon V2. Steer clear.
The publish FBI Launches Safemoon Victim Appeal: Will SFM Investors Get Money Back? appeared first on 99Bitcoins.
