United States of America: Announced SEC lawsuit against crypto company Safemoon over alleged fraud and unregistered offering of securities

On 1 November 2023, the US Securities and Exchange Commission (SEC) announced that it filed a lawsuit against Safemoon LLC and the executive team over fraud and unregistered offering of crypto securities. The Safemoon allegedly failed to register as a seller of securities, took out crypto assets worth over USD 200 million from the project, and misused investor funds for personal use. The lawsuit was filed in the US District Court for the Eastern District of New York and charged the defendants with violations of the registration and anti-fraud provisions of the Securities Act of 1933 and the anti-fraud provisions of the Securities Exchange Act of 1934.