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The US Department of Justice has arrested SafeMoon CEO John Karony and Chief Technology Officer Thomas Smith for fraud.

Police have issued a warrant for SafeMoon creator Kyle Nagy’s arrest, who’s currently on the run.

“The DOJ alleges they withdrew $200 million of the investors’ money to buy real estate, custom sports cars, luxury vehicles and overseas trips – in other words, real things with the unreal money,” Sky News Business Editor Ross Greenwood said.

“There’s no surprise that SafeMoon’s price looks like the Space Shuttle Challenger disaster.

“It’s down 48 per cent – that’s just today. It’s down 98 per cent from its all-time high, that was two years ago.”