Close Menu
AsiaTokenFundAsiaTokenFund
  • Home
  • Crypto News
    • Bitcoin
    • Altcoin
  • Web3
    • Blockchain
  • Trading
  • Regulations
    • Scams
  • Submit Article
  • Contact Us
  • Terms of Use
    • Privacy Policy
    • DMCA
What's Hot

Understanding RSI: Simplifying Overbought and Oversold Market Indicators

May 31, 2025

Crypto Bulls See $644M Bloodbath As Bitcoin Dips Below $105,000

May 31, 2025

Cardano Slips, While Toncoin Surges—Which One Sets the Next Market Tone?

May 30, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) YouTube LinkedIn
AsiaTokenFundAsiaTokenFund
ATF Capital
  • Home
  • Crypto News
    • Bitcoin
    • Altcoin
  • Web3
    • Blockchain
  • Trading
  • Regulations
    • Scams
  • Submit Article
  • Contact Us
  • Terms of Use
    • Privacy Policy
    • DMCA
AsiaTokenFundAsiaTokenFund

Safemoon executive pleads guilty in $200M fraud case as project pivots to memecoin strategy

0
By Aggregated - see source on February 21, 2025 Scams
Share
Facebook Twitter LinkedIn Pinterest Email

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.

On Feb. 20, investigative YouTuber Stephen Findeisen, known as Coffeezilla, reported the development, recalling that he had exposed Safemoon’s fraudulent practices three years ago. At the time, the project dismissed concerns as baseless fear, uncertainty, and doubt (FUD).

However, Smith has now admitted to misleading investors about Safemoon’s liquidity and faces a maximum sentence of 20 years for wire fraud conspiracy and 25 years for securities fraud.

Meanwhile, his admission marks a shift from his earlier not-guilty plea in a case involving investor deception and misappropriation of funds.

However, the court will consider his cooperation during the investigation when determining his sentence.

SEC charges against Safemoon

Smith’s guilty plea follows the US Securities and Exchange Commission’s (SEC) November 2023 crackdown on the crypto project’s leadership team, which included him, Safemoon CEO Braden John Karony, and project creator Kyle Nagy.

The financial agency charged them with multiple federal law violations, including fraud, conspiracy, and money laundering.

The regulators accused them of falsely marketing Safemoon as a secure investment with a locked liquidity pool. However, the investigators later discovered that the team had unrestricted access to these funds, siphoning over $200 million for personal expenses.

Reports indicate that the stolen money funded luxury cars, real estate, and other high-end purchases.

Authorities also alleged that Safemoon executives manipulated trading activity to create a false sense of demand. While Smith has admitted guilt, Karony continues to deny the charges, and Nagy remains at large.

Safemoon memecoin

Smith’s guilty plea comes as the project undergoes a restructuring following its acquisition by a new entity.

On Feb. 14, Safemoon’s new team announced that its community fully controls the project.

The team plans to launch a Solana-based memecoin as part of its revival strategy. The project will be community-driven, prioritizing engagement without a predefined utility.

The project stated:

“SafeMoon is a meme coin. That’s what it should have been from day one. No convoluted promises, no forced utility—just a movement. Because at the heart of every legendary meme coin is a simple, compelling idea. A brand. A rallying cry that people connect with on a deeper level.”

Meanwhile, the team has warned investors to remain cautious, emphasizing that they have not yet released the official contract address for the new token.

Mentioned in this article
Blocscale

Credit: Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

US Treasury sanctions Philippines tech firm over aiding $200 million pig butchering spree

May 30, 2025

Trader loses $2.5M USDT after falling for address poisoning scam twice

May 26, 2025

Creator of over 100 memecoins says rug pulls are the ‘easiest way to make money’

May 18, 2025
Leave A Reply Cancel Reply

What's New Here!

Understanding RSI: Simplifying Overbought and Oversold Market Indicators

May 31, 2025

Crypto Bulls See $644M Bloodbath As Bitcoin Dips Below $105,000

May 31, 2025

Cardano Slips, While Toncoin Surges—Which One Sets the Next Market Tone?

May 30, 2025

Crypto Liquidations Nearly $1B Today: Time to Exit and Take Profits?

May 30, 2025
AsiaTokenFund
Facebook X (Twitter) LinkedIn YouTube
  • Home
  • Crypto News
    • Bitcoin
    • Altcoin
  • Web3
    • Blockchain
  • Trading
  • Regulations
    • Scams
  • Submit Article
  • Contact Us
  • Terms of Use
    • Privacy Policy
    • DMCA
© 2025 asiatokenfund.com - All Rights Reserved!

Type above and press Enter to search. Press Esc to cancel.

Ad Blocker Enabled!
Ad Blocker Enabled!
Our website is made possible by displaying online advertisements to our visitors. Please support us by disabling your Ad Blocker.