The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against SafeMoon, a cryptocurrency project that claims to offer high returns to investors, and its top executives, alleging that they violated federal securities laws and defrauded millions of people.

According to the SEC’s complaint, SafeMoon raised over $4 billion from more than 2.4 million investors in an unregistered offering of digital tokens that promised to reward holders with more tokens for not selling. The SEC alleges that Safe Moon’s founders and promoters, John Karony, Thomas Smith, and Jack Haines, made false and misleading statements about the project’s legitimacy, security, and profitability, while secretly selling their own tokens and enriching themselves at the expense of investors.

The SEC also claims that SafeMoon failed to disclose material information about its operations, finances, and risks, such as the fact that it was not registered with any regulatory authority, that it had no audited financial statements, that it faced significant technical and legal challenges, and that it was vulnerable to hacking and theft. The SEC further alleges that SafeMoon used social media platforms, such as Twitter, Reddit, YouTube, and TikTok, to create a hype around its token and manipulate its price.

The SEC is seeking permanent injunctions, disgorgement of ill-gotten gains, civil penalties, and bars against the defendants from participating in any future securities offerings or digital asset markets. The SEC also warns investors to be wary of cryptocurrency projects that promise unrealistic returns or use aggressive marketing tactics.

“SafeMoon and its executives exploited the public’s interest in digital assets to raise billions of dollars from unsuspecting investors who were lured by the promise of high rewards with little risk,” said Kristina Littman, Chief of the SEC Enforcement Division’s Cyber Unit. “We allege that this scheme was nothing more than a fraud that left investors with worthless tokens and empty pockets.”

The SEC’s investigation was conducted by Michael D. Foster, David H. Tutor, and John O. Enright of the Cyber Unit. The litigation will be led by Stephan Schlegelmilch and Ms. Littman. The SEC appreciates the assistance of the Federal Bureau of Investigation.

North Dakota woman fatally poisons boyfriend hours after he inherited $30 Million

A shocking case of murder has been reported in North Dakota, where a woman allegedly poisoned her boyfriend with antifreeze just hours after he inherited $30 million from his late father. The woman, identified as 45-year-old Sandra Lee Smith, was arrested on Monday and charged with first-degree murder and conspiracy to commit murder.

According to the police, Smith and her boyfriend, 47-year-old James Johnson, had been living together for about two years in a rented apartment in Fargo. Johnson’s father, who was the founder and CEO of a successful software company, had died of natural causes in September and left his entire fortune to his only son. Johnson received the inheritance on Friday and planned to move out of the apartment with Smith and buy a new house.

However, Smith had other plans. She allegedly conspired with her ex-husband, 48-year-old Robert Smith, to kill Johnson and claim his money. The police said that Smith bought antifreeze from a local store on Saturday and mixed it with Johnson’s drink. She then called 911 on Sunday morning and claimed that Johnson was unconscious and not breathing. Paramedics arrived at the scene and pronounced Johnson dead.

The police became suspicious of Smith’s story when they found a receipt for antifreeze in her purse and noticed that she had packed her bags as if she was ready to leave. They also found out that she had contacted a lawyer and asked about how to access Johnson’s bank accounts. A toxicology report confirmed that Johnson had died of ethylene glycol poisoning, which is the main ingredient in antifreeze.

Smith was taken into custody and confessed to the crime during interrogation. She said that she was unhappy with Johnson and wanted to get rid of him. She also admitted that she had enlisted the help of her ex-husband, who agreed to split the money with her. Robert Smith was also arrested and charged with the same crimes as his former wife.

The police said that this was one of the most cold-blooded and greedy murders they had ever seen. They said that Johnson was a kind and generous man who had no idea that his girlfriend was plotting against him. They also said that Smith showed no remorse for her actions and only cared about the money. Smith and Robert Smith are currently being held without bail at the Cass County Jail. They face life imprisonment or the death penalty if convicted.

Hester Peirce lambasts the SEC’s approach to LBRY, says there is not a clear path to register

Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission (SEC), has criticized the agency’s decision to sue LBRY, a blockchain-based content platform, for allegedly selling unregistered securities.

In a speech delivered at the Cato Institute’s FinTech Unbound conference on October 29, Peirce said that the SEC’s enforcement action against LBRY “illustrates the difficulties crypto entrepreneurs face in trying to comply with our securities laws.”

Peirce, who is known as “Crypto Mom” for her pro-crypto stance, argued that LBRY’s tokens, called LBRY Credits (LBC), are not securities, but rather “functional tokens that facilitate the decentralized distribution of digital content.”

She said that LBC are used to reward content creators and curators, as well as to pay for network services, such as data storage and bandwidth. She also noted that LBC are not marketed as investments, and that LBRY does not promise any returns to its users.

Peirce said that the SEC’s lawsuit against LBRY, which was filed in March 2021, has effectively “shut down” the platform’s ability to operate and innovate in the U.S. market. She said that the SEC’s approach to crypto regulation is “backward-looking” and “punitive,” and that it does not provide a clear path for crypto projects to register their tokens as securities.

She said that the SEC should instead adopt a more “forward-looking” and “proactive” approach, and that it should provide more guidance and clarity to crypto entrepreneurs on how to comply with the securities laws. She also suggested that the SEC should consider creating a safe harbor for crypto projects, similar to the one she proposed in February 2020.

Peirce’s speech comes at a time when the SEC is facing increasing scrutiny and criticism from the crypto industry and some lawmakers for its lack of clarity and consistency on crypto regulation. The SEC is also involved in several high-profile lawsuits against crypto companies, such as Ripple, Coinbase, and Block.one.

Peirce is not the only one who has criticized the SEC’s approach to crypto regulation. Other prominent figures who have expressed their concerns include Brian Armstrong, the CEO of Coinbase; Brad Garlinghouse, the CEO of Ripple; Mark Cuban, the billionaire investor and owner of the Dallas Mavericks; and Cynthia Lummis, a U.S. senator from Wyoming who is a vocal advocate for crypto.

These critics have argued that the SEC is stifling innovation and competition in the crypto space, and that it is applying outdated and unclear rules to a new and dynamic technology. They have also called for more dialogue and collaboration between the SEC and the crypto industry, as well as for more legislative action from Congress to create a clear and comprehensive framework for crypto regulation.