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The SafeMoon lawsuits: explained – Utah Business

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MeIn March 2021, the SafeMoon token was created by investors and cryptocurrency developers. John CaroneyShortly thereafter, the Safemoon Token was heavily promoted by celebrities such as professional boxer Jake Paul. Singer Nick Carter. And rapper Soulja Boy promises investors wealth.

By May 2022, SafeMoon will be the subject of three class-action lawsuits (one in Utah and two in California) accusing SafeMoon executives and promoters of selling millions of dollars worth of SafeMoon tokens to private individuals. claimed to have siphoned other cryptocurrencies from the project for personal gain.

Case numbers are 2:22-cv-01108 and 2:22-cv-01527 for California cases and 2:22-cv-00332 for Utah cases.california company Scott + Scott A provision has been made to transfer the California lawsuits to Utah, and these lawsuits have been consolidated into one lawsuit in the United States District Court in Utah, where Safemoon is headquartered. Scott+Scott has been appointed lead counsel for the plaintiffs.

John Jasnoch Scott+Scott and California Lawyers class action complaintHe is also the plaintiff’s lead attorney. Jasnoch said utah business The case alleges that a fraudulent scheme was carried out among the defendants to misleadingly advertise and sell Safemoon tokens.

According to the class action complaint for case number 2:22-cv-01108, “This case is about various individuals in the cryptocurrency sector accusing unsuspecting investors of a SafeMoon-related digital asset (the SAFEMOON token). Our executives have worked with several celebrity promoters to (a) misrepresent or mislead investors about SafeMoon through social media advertising and other promotional activities; made a misleading statement and (b) disguised its control over a significant percentage of the SafeMoon and SAFEMOON tokens that were available for public trading during the class period (the “float”); ”

Section 3 of the complaint continues: “To facilitate this scheme, Defendant advertised the innovations in our token and related cryptocurrency wallets, as well as the ability of investors to obtain significant returns due to the favorable “token economics” of his SAFEMOON token. did. In fact, defendants sold SAFEMOON tokens to investors so that they could sell part of the float for profit. ”

Section 4 of the Complaint states, “Defendant’s strategy was successful. at an inflated price, while Company executives Calony and Haynes Davis colluded with Promoter Defendants to sell SAFEMOON tokens to investors for profit.”

In an email, Jasnoch said executives from SafeMoon’s corporate body worked with celebrity promoters to make false and misleading statements about SafeMoon through social media ads. “SafeMoon executives disguised control over SafeMoon and a significant percentage of his SafeMoon tokens available for public trading,” he says. “Defendants promoted purported technological innovations in the SafeMoon token and related cryptocurrency wallets, as well as the ability of investors to obtain significant returns due to the SafeMoon token’s favorable “tokenomics.” The misleading promotion artificially increased the interest and price of the SafeMoon token, causing investors to buy the token at a very inflated price. ”

After the SafeMoon token price and trading volume spiked following celebrity promotions, the defendants launched a “slow lag pull” against investors, Jasnoch explained. Defendant has encouraged investors to purchase tokens with the promise of future success, and at the same time, has slowly sold off the assets it held as trading volumes from individual investors remain inflated, thereby reducing investment. cheated on the house

Jasnoch alleges that the plaintiffs are unregistered securities and that the defendants committed securities fraud by making false and misleading statements. , and seeks to cancel the purchase and damages.

One of the main concerns in the SafeMoon lawsuit is the issue of digital assets and how they are regulated by the United States. US Securities and Exchange Commission (SEC) United States Supreme Court andhowie testa test to determine whether a digital asset is a security.

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