Investors Say SafeMoon Artificially Inflated Crypto Token

By Elise Hansen (February 18, 2022, 5:42 PM EST) — Executives at cryptocurrency wallet company SafeMoon hyped up the company’s digital token in order to pump up the price, then sold off their stakes before trading volume tanked, a group of token buyers told a California federal court.

The token buyers, led by Bill Merewhuader, on Thursday accused SafeMoon, its executives and its promoters of violating California’s unfair competition law and of unjust enrichment, among other claims.

SafeMoon touts a cryptocurrency wallet and a namesake digital token, and company insiders told investors they could earn returns on its tokens, the investors said.

According to the investors, SafeMoon executives worked with celebrity…