The United States Securities and Exchange Commission (SEC) has filed charges against SafeMoon and three of its executives, alleging fraud and unregistered securities sales related to the use of SafeMoon token.

An indictment unsealed on Wednesday in Brooklyn charged founder Kyle Nagy, 35, Chief Executive Braden John Karony, 27, and former Chief Technology Officer Thomas Smith, 35, with three counts each of conspiring to commit securities fraud, wire fraud, and money laundering.

According to a Reuters report, the trio is accused of defrauding investors of $US200 million and using the funds to support extravagant lifestyles.

As per the Justice Department's announcement, Karony and Smith have been apprehended, while Nagy is currently evading arrest.

At the time of publishing, attorneys representing SafeMoon and the accused individuals have not provided immediate comments in response to requests.

Created in March 2021, SafeMoon's native token SFM, recorded a price surge of over 55,000% between the time of its launch to April 20, 2021. Its market capitalisation soared to a substantial $US5.7 billion during the period.

However, reports of its purportedly locked liquidity pool being accessible emerged in April 2021, resulting in a nearly 50% crash in the token's price.