SafeMoon was not so safe when sued along with several international celebrities for promoting crypto assets with false statements to the point of inviting plaintiffs ’losses.
3 plaintiffs identified as Bill Merewhuader, Christopher Polite, and Tim Viane also represented other victims facing similar frustration.
While the executive defendants were - SafeMoon CEO, Braden John Karony; COO SafeMoon, Jack Haines-Davies; Head of Global Products, Ryan Arriaga; and two of his staff, Shaun Witriol and Henry Wyatt.
The celebrity defendants consisted of YouTuber, Jake Paul; YouTuber Britain, Ben Phillips; former Backstreet Boy member, Nick Carters; rapper, Soulja Boy and Lil Yatchy.
SafeMoon LLC and its subsidiaries are also listed as defendants.
What happen?
It is understood that the plaintiff has submitted 150 allegations against all defendants and 7 of them are:
SafeMoon has been deceitful in explaining the tokenomy of SAFEMOON’s assets, causing a misunderstanding of its supply limitations.
SafeMoon uses celebrities to create market demand pressure until the SAFEMOON token pump and dump.
Celebrity defendants were compensated in SAFEMOON and joined executive defendants for the dump
April 4, 2021 - The executive defendant published the SafeMoon roadmap via his official Instagram social media account.
The company promises to complete the SafeMoon wallet by the end of the second quarter (Q2) of 2021, create a non-fungible token exchange (NFT) by the end of Q3, and launch the SafeMoon exchange in Q4.
All of those promises show no sign of launch whereas many more projects are listed in the roadmap and SafeMoon continues to make promises to its investors.
SafeMoon hired Ryan Arriaga to salvage the bad situation related to the project. They have also attacked and denied the audit report by HashEx - ‘HashEx SafeMoon Audit DEBUNKED’ on 2 June 2021.
August 28, 2021 - The executive defendants sped up the launch of the ‘so -called’ SafeMoon wallet which took place at 4pm.
August 30, 2021-Karony claims he along with other investors are also disappointed with the failure of the wallet launch
Plaintiffs allege SafeMoon was dishonest and continued to promote the launch of the SafeMoon wallet to raise the price of SAFEMOON.
Karony also asked the SafeMoon community not to panic and calm down as it is clear this issue is not worth worrying about.
In fact, Karony claims lawsuits are part of what normally happens in a large business space.
Of course this incident invited a variety of reactions. Some agree with Karony, there are also a handful pointing fingers at SafeMoon.
Even so, it is interesting to see the progress of this case as the trial between Ripple and the Securities and Exchange Commission (SEC) is still going on for over a year!
