• News
    • Bitcoin
    • Altcoins
    • Blockchain
    • DeFi
    • Regulation
    • Scams
  • NFT
  • Metaverse
  • Analysis
  • Learn
  • Videos
  • Blogs
  • Market Cap
  • Shop
What's Hot

ZachXBT warns suspected ZKasino fraudster may be linked to new crypto venture WhiteRock

2025-06-16

Crypto’s Going MAINSTREAM… The Signs Are All Here!

2025-06-15

How and When Do I Take Bitcoin Profits? | Top Altcoins

2025-06-14

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

Facebook Twitter Instagram
Crypto Investor News Network
  • News
    • Bitcoin
    • Altcoins
    • Blockchain
    • DeFi
    • Regulation
    • Scams
  • NFT

    All Eyes on Art: Upcoming Collections to Watch the Week of February 4

    2025-02-05

    Creator of rabbit AI assistant has hidden NFT past

    2024-05-02

    Ethereum tops daily NFT sales at US$7 mln, ends weakest month of 2024

    2024-05-02

    Top NFT Airdrops and Giveaways for May 2024

    2024-05-02

    Casio Launches NFT Collection Celebrating 50th Anniversary

    2024-05-01
  • Metaverse

    Shib: The Metaverse – Part of the Expanding Shiba Inu Ecosystem

    2025-01-03

    Experience to Earn: Everdome’s Metaverse Frontier

    2024-12-30

    Beyond Bots: Meta Motivo and the Dawn of Humanlike Digital Life

    2024-12-13

    Exploring NetVRk: What Is Behind This AI-Driven Virtual Universe?

    2024-10-28

    Council of Europe Highlights Metaverse’s Impact on Privacy and Democracy

    2024-09-05
  • Analysis

    Crypto Exchange Coinbase Lists New DeFi Altcoin Project Built on Base Blockchain

    2023-12-13

    Ethereum Price Bears Keep Pushing, Why Decline Isn’t Over Yet

    2023-12-13

    Trader Bullish on Cosmos (ATOM), Says One Dogecoin Rival Setting Up for Next Leg Up – Here’s His Outlook

    2023-12-13

    AVAX Price Pumps 50% and Dumps 15%, Why Uptrend Is Still Strong

    2023-12-13

    Top Trader Predicts Parabolic Rally for Solana Competitor – Here’s His Upside Target

    2023-12-13
  • Learn

    What Is Fully Diluted Valuation (FDV) in Crypto?

    2025-06-12

    What Does FUD Mean in Crypto? The Fear, Uncertainty, and Doubt Effect

    2025-06-09

    What Is Crypto Staking? How to Earn Crypto by Holding It

    2025-06-05

    What Are Liquidity Pools? A Guide to DeFi Explained Simply

    2025-06-05

    What Is Yield Farming in Crypto? A Beginner’s Guide to DeFi Income

    2025-06-02
  • Videos

    Crypto’s Going MAINSTREAM… The Signs Are All Here!

    2025-06-15

    How and When Do I Take Bitcoin Profits? | Top Altcoins

    2025-06-14

    Why BTC Might Explode to $150K 🌕

    2025-06-14

    Why Bitcoin Core Is Bitcoin

    2025-06-14

    Japan’s Bond Chaos: The Trigger for the Next Crypto Bull Run?

    2025-06-14
  • Blogs
  • Market Cap
  • Shop
Facebook Twitter Instagram TikTok
Crypto Investor News Network
Home»Scams»Safemoon executive pleads guilty in $200M fraud case as project pivots to memecoin strategy
Scams

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

2025-02-21No Comments2 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Safemoon executive pleads guilty in $200M fraud case as project pivots to memecoin strategy
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.

See also  Polkadot treasury allocates $14.4 million to bolster DeFi project Hydration

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
200M Case Executive fraud guilty Memecoin pivots pleads Project SafeMoon strategy
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

ZachXBT warns suspected ZKasino fraudster may be linked to new crypto venture WhiteRock

2025-06-16

Coinbase data breach spills offline as victims get scam mail

2025-06-05

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

2025-05-30

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

2025-05-26
Add A Comment

Leave A Reply Cancel Reply

Top Posts
Videos

BUY BITCOIN NOW…The Reason Might Surprise You

2025-05-07

Bitcoin is heading higher after FOMC press conference…why? Also Bitcoin gets a huge endorsement from…

NFT

An Exclusive Look at the Rising Solana Community

2023-05-04

Depending on what your Twitter timeline looks like, you may have seen your favorite influencer…

Altcoins

LUNC Burn Tax Set To Rise To 0.5% As KuCoin Proposal Receives Approval

2023-05-20

After garnering the required votes, a major proposal has just passed in the KuCoin network.…

Subscribe to Updates

Get the latest news and Update from CINN about Crypto, Metaverse and NFT.

Editors Picks

ZachXBT warns suspected ZKasino fraudster may be linked to new crypto venture WhiteRock

2025-06-16

Crypto’s Going MAINSTREAM… The Signs Are All Here!

2025-06-15

How and When Do I Take Bitcoin Profits? | Top Altcoins

2025-06-14

Why BTC Might Explode to $150K 🌕

2025-06-14
Crypto Investor News Network
Facebook Twitter Instagram TikTok
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Disclouser
© 2025 - All rights are reserved.

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

bitcoin
Bitcoin (BTC) $ 104,893.10
ethereum
Ethereum (ETH) $ 2,522.31
tether
Tether (USDT) $ 1.00
xrp
XRP (XRP) $ 2.15
bnb
BNB (BNB) $ 651.51
solana
Solana (SOL) $ 147.35
usd-coin
USDC (USDC) $ 1.00
tron
TRON (TRX) $ 0.274098
dogecoin
Dogecoin (DOGE) $ 0.170601
staked-ether
Lido Staked Ether (STETH) $ 2,521.49
bitcoin
Bitcoin (BTC) $ 104,893.10
ethereum
Ethereum (ETH) $ 2,522.31
tether
Tether (USDT) $ 1.00
xrp
XRP (XRP) $ 2.15
bnb
BNB (BNB) $ 651.51
solana
Solana (SOL) $ 147.35
usd-coin
USDC (USDC) $ 1.00
tron
TRON (TRX) $ 0.274098
dogecoin
Dogecoin (DOGE) $ 0.170601
staked-ether
Lido Staked Ether (STETH) $ 2,521.49