tl;dr
Former Safemoon Chief Technology Officer (CTO) Thomas Smith has pleaded guilty to charges related to a $200 million fraud scheme tied to the controversial crypto project. The US Securities and Exchange Commission (SEC) cracked down on the project's leadership team, accusing them of falsely marketing...
Safemoon's former Chief Technology Officer (CTO), Thomas Smith, has pleaded guilty to charges related to a $200 million fraud scheme tied to the controversial crypto project. The US Securities and Exchange Commission (SEC) cracked down on the project's leadership team, accusing them of falsely marketing Safemoon as a secure investment with a locked liquidity pool.
Smith's guilty plea comes as Safemoon undergoes a restructuring following its acquisition by a new entity. The project plans to launch a Solana-based memecoin as part of its revival strategy, emphasizing community control and engagement without a predefined utility. The team has warned investors to remain cautious as the official contract address for the new token has not yet been released.
Investigative YouTuber Stephen Findeisen, known as Coffeezilla, reported Smith's guilty plea and highlighted that he had exposed Safemoon’s fraudulent practices three years ago. Smith faces a maximum sentence of 20 years for wire fraud conspiracy and 25 years for securities fraud.
The SEC's November 2023 crackdown on Safemoon's leadership team included charges of fraud, conspiracy, and money laundering. The team was accused of falsely marketing Safemoon as a secure investment with a locked liquidity pool, while funneling over $200 million for personal expenses, including luxury cars and real estate. Safemoon also manipulated trading activity to create a false sense of demand.
The project's new team emphasizes community-driven engagement and warns investors to remain cautious as they prepare to launch the Solana-based memecoin without having released the official contract address for the new token.