The Securities and Exchange Commission filed a lawsuit against SafeMoon and some of its top officials on Wednesday 

The SEC accused SafeMoon, creator Kyle Nagy, CEO John Karony and CTO Thomas Smith of “perpetrating a massive fraudulent scheme through the unregistered sale of the crypto asset security, SafeMoon.”

The complaint, filed in the U.S. District Court for the Eastern District of New York, alleges that Nagy falsely assured investors that the token would be locked in the liquidity pool, however “large portions” of the pool were “never locked.”

“Critically, Nagy represented in marketing materials, his whitepaper, and website that these retained assets would be…

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