Thomas Smith, the former Chief Technology Officer of SafeMoon, has pleaded guilty to securities fraud conspiracy and wire fraud conspiracy related to a multimillion-dollar scheme.
Details of the Guilty Plea
During a hearing before Judge Cheryl Pollak, Smith admitted to misleading investors about the safety of SafeMoon's liquidity pool, falsely claiming it was locked and inaccessible. This admission was part of his guilty plea to charges of securities and wire fraud conspiracy after withdrawing his initial not-guilty plea.
Investigation into SafeMoon
The SafeMoon scandal surfaced in November 2023, when the SEC and DOJ charged Smith, SafeMoon CEO Braden John Karony, and project creator Kyle Nagy with conspiracy, fraud, and money laundering. The allegations include false marketing of the SFM token and illicitly using investor funds for luxury purchases.
Separate Case of DeFi Cyberattacks
In a separate case, U.S. authorities indicted Andean Medjedovic for alleged cyberattacks on two DeFi protocols—KyberSwap in 2023 and Indexed Finance in 2021. He is accused of exploiting smart contract vulnerabilities to steal $65.3 million, leaving investors with devalued assets.
The SafeMoon case continues to unfold with significant repercussions for those involved. Smith's admission marks a pivotal change in the legal proceedings, but many questions remain unanswered.
