The FBI’s New York workplace is urging SafeMoon traders who misplaced cash to return ahead as a part of a federal investigation into one of many DeFi’s most notorious frauds.
In Could 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 massive) diverted hundreds of thousands of {dollars} from SafeMoon’s liquidity pool. When you’re one of many many victims looking for 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 in opposition to SafeMoon right here.
In line with the Bureau: Victims might qualify for “sure providers, restitution, and rights beneath federal and/or state regulation.”
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 Massive?
SafeMoon was emblematic of the 2021 “meme coin” mania. It really predated the formal memecoin wave that will come three years later. Promoted as a community-driven token with “computerized liquidity,” it rode the retail wave alongside Dogecoin and Shiba Inu. At its peak, SafeMoon briefly reached a multibillion-dollar market capitalization.
Nonetheless, in contrast to initiatives reminiscent of 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 a number of shitheads I couldn’t consider my eyes once I noticed folks emphatically repeating the whole 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 person
Whereas actual figures differ, 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 mission, Safemoon V2, however no one trusts any mission that’s even vaguely related to the rip-off. Extra broadly, the SafeMoon case indicators 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 one in every 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 Simply Change Every thing For Meme Cash?
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Key Takeaways
The FBI’s New York workplace is urging SafeMoon traders who misplaced cash to return ahead in opposition to one of many largest frauds in DeFi.
Expectedly, there’s a brand new SafeMoon mission, Safemoon V2. Steer clear.
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