Thomas Smith, the former Chief Technology Officer of SafeMoon, has admitted guilt in a $200 million fraud scheme, marking a significant turn in the case against SafeMoon’s leaders.
The Deception Behind SafeMoon
Smith's confession comes years after YouTuber Stephen Findeisen, known as Coffeezilla, exposed SafeMoon’s shady dealings. When these claims first surfaced in 2021, SafeMoon’s team dismissed them as false accusations. SafeMoon, a BNB Chain-based project, was portrayed as a secure investment. However, in March 2023, the liquidity pool was compromised. The project's leaders had full access to the funds and used them for personal gain. Investigators found over $200 million misappropriated toward luxury purchases and manipulated trading activity.
A Bigger Crackdown on SafeMoon’s Leaders
Smith's guilty plea follows significant legal pressure on SafeMoon’s leadership. In November 2023, the SEC charged Smith, CEO Braden John Karony, and project creator Kyle Nagy with fraud and money laundering. While Smith has admitted his crimes, Karony denies the charges, and Nagy is missing. Smith’s cooperation will be considered during sentencing.
Safemoon Plans To Focus On Memecoin
SafeMoon is trying to make a fresh start after its past problems. A new team now leads the project with a different direction. Last week, they announced a full handover of control to the community. Their new plan includes launching a memecoin on the Solana blockchain, urging investors to stay alert for imposters as the official token contract address is pending.
The admission of guilt by Thomas Smith marks a turning point in the ongoing legal saga against SafeMoon. As the project looks to start anew with a memecoin launch, investors are advised to remain vigilant.
