- Thomas Smith, CTO of SafeMoon, pleaded guilty to fraud charges, facing up to 45 years in prison
- SafeMoon’s market cap plunged by more than half due to the fraud allegations
- Kyle Nagy, SafeMoon’s creator, remains missing and is rumored to be in Russia
Thomas Smith, the Chief Technology Officer of Safemoon, recently pleaded ‘guilty’ in the infamous Safemoon fraud case. Smith was charged with fraud conspiracy, and wire fraud conspiracy, potentially leading to up to 45 years in prison.
During a hearing on February 20, Thomas Smith faced Magistrate Judge Cheryl Pollak at a Brooklyn federal court to withdraw his then “not-guilty” plea.
Back in November 2021, the U.S. Department of Justice, alongside the Securities and Exchange Commission charged several Safemoon top executives like Thomas Smith and the company’s CEO John Karony with securities fraud conspiracy, wire fraud conspiracy, and money laundering. According to the accusations, the executives alongside the project’s creator Kyle Nagy allegedly sold Safemoon tokens (SFM) under the pretence that the liquidity of such tokens was locked in the blockchain.
At the time, the events caused Safemoon’s market capitalization to plunge by more than half of its value in only a couple of days. Also, the negative press inherited from the fiasco affected investor’s confidence in crypto projects.
Thomas Smith was the first among the accused to plead guilty to the charges. As of today, Safemoon CEO John Karony has pleaded non-guilty and is looking to get all charges against him dropped.
Kyle Nagy, the creator of Safemoon, still has not answered the court. During the company meltdown, Nagy disappeared. To this day, the company’s creator hasn’t been found. Rumors suggest that Nagy is currently living in Russia.
The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Read more
