In March 2021, the SafeMoon token was created by investors and cryptocurrency developers, including SafeMoon’s Utah-based CEO, John Karony. Shortly thereafter, SafeMoon tokens were heavily promoted by celebrities like Jake Paul, a professional boxer; singer Nick Carter; and rapper Soulja Boy, promising investors riches.
By May 2022, SafeMoon became the subject of three class action lawsuits (one in Utah and two in California) alleging SafeMoon executives and promoters sold millions of dollars worth of SafeMoon tokens and siphoned other cryptocurrencies from the project for their personal gain.
The case numbers are 2:22-cv-01108 and 2:22-cv-01527 for the California cases and 2:22-cv-00332 for the Utah case. California firm Scott+Scott stipulated to transfer the California cases to Utah, and the cases are being consolidated into one single action in the federal district court in Utah, where SafeMoon is headquartered. Scott+Scott has been appointed as lead counsel for the plaintiffs.
John Jasnoch is a partner at Scott+Scott and a lawyer for the California class action complaints. He is also lead counsel for the plaintiffs. Jasnoch told Utah Business that the case alleges a fraudulent scheme among the defendants to misleadingly promote and sell SafeMoon tokens.
According to the class action complaint for case number 2:22-cv-01108, “This case arises from a scheme among various individuals in the cryptocurrency sector to misleadingly promote and sell the digital…
