Former Safemoon Chief Technology Officer (CTO) Thomas Smith has found himself guilty of charges with regard to a $ 200 million fraud plan linked to the controversial crypto project.
On February 20, research reported YouTuber Stephen Fice, known as Coffeezilla, the development and recalled that he had exposed the fraudulent practices of Safemoon three years ago. At the time, the project rejected the concern such as unfounded fear, uncertainty and doubt (FUD).
However, Smith has now admitted that he misled investors about the liquidity of Safemoon and stands for a maximum punishment of 20 years for conspiracy of wire fraud and 25 years for securities fraud.
In the meantime, his admission marks a shift of his earlier non-guilty plea in a case involving investor frog and embezzlement of funds.
However, the court will consider his cooperation during the investigation in determining his sentence.
Sec
Smith’s guilty plea follows the US Securities and Exchange Commissions (SEC) November 2023 Performing in the leadership team of the Crypto Project, including him, Safemoon CEO roasting John Karony and Project Creator Kyle Nagy.
The financial agency accused them of multiple violations of federal legislation, including fraud, conspiracy and money laundering.
The supervisors accused them of Vals Marketing of Safemoon as a safe investment with a locked liquidity pool. However, the researchers later discovered that the team had unlimited access to these funds, making more than $ 200 million for personal expenses.
Reports indicate that the stolen money with luxury cars, real estate and other high -quality purchases were financed.
Authorities also claimed that Safemoon managers manipulated trading activities to create a false sense of requirement. Although Smith has admitted guilt, Karony continues to deny the charges and Nagy remains free.
Safemoon Memecoin
Smith’s culprit plea comes when the project undergoes a restructuring after the acquisition by a new entity.
On February 14, the new Safemoon team announced that the community fully checks the project.
The team plans to launch a Solana -based memecoin as part of its revival strategy. The project will be community drives and give priority to involvement without a predefined utility.
The project explained:
“Safemoon is a meme coin. That is what it should have been from the first day. No complicated promises, no forced use – just a movement. Because the core of every legendary meme coin is a simple, fascinating idea. A brand. A rally cry with which people connect at a deeper level. “
In the meantime, the team has warned investors to remain careful and emphasizes that they have not yet released the official contract address for the new token.
