Key SafeMoon Figure Pleads Guilty in Multi-Million Dollar Crypto Scheme
Former SafeMoon CTO Thomas Smith has made a dramatic reversal, pleading guilty to his role in a $200 million crypto fraud scheme.
📌 The charges involve manipulating SafeMoon (SFM) liquidity and deceiving investors.
📌 Smith now faces up to 25 years in prison for securities fraud and 20 years for wire fraud conspiracy.
📌 Prosecutors allege that SafeMoon executives misused investor funds to finance a lavish lifestyle, including luxury real estate and high-end vehicles.
This major turnaround comes months after Smith initially denied all allegations. What led to his plea change, and what’s next for the trial?
Plea Change: Smith Admits Guilt in Court
🗓️ On February 20, 2025, Smith officially appeared before a federal court in Brooklyn, where he changed his previous plea of "not guilty" to "guilty."
⚖️ Judge Cheryl Pollak has recommended that District Judge Eric Komitee accept the new plea and determine sentencing.
🔹 Smith faces up to 25 years in prison for securities fraud.
🔹 He could also receive a maximum of 20 years for wire fraud conspiracy.
His guilty plea suggests a possible deal with prosecutors, which could lead to a reduced sentence in exchange for cooperation in the ongoing investigation.
The SafeMoon Scheme: How Executives Deceived Investors
SafeMoon was marketed as a revolutionary crypto project, promising investors passive income through permanently locked liquidity.
📢 Executives falsely claimed that the liquidity pool for SafeMoon (SFM) was locked, ensuring price stability and preventing manipulation.
💰 However, they allegedly had full access to the funds and secretly funneled millions into their personal accounts.
According to prosecutors, SafeMoon reached a market cap of $5.7 billion to $8 billion, before its value crashed nearly 50% on April 20, 2021.
📉 This crash followed revelations that the liquidity pool had never been locked, contradicting SafeMoon’s claims.
💸 While retail investors suffered heavy losses, company executives made millions.
Other SafeMoon Executives Face Charges
🔹 Alongside Smith, CEO Braden John Karony and SafeMoon founder Kyle Nagy were also charged.
🔹 All three face allegations of fraud, market manipulation, and money laundering.
🔹 Nagy remains at large and is believed to be hiding in Russia.
While Smith has pleaded guilty, Karony continues to maintain his innocence.
Trump’s Influence: Could It Impact the Trial?
In an unexpected turn, Braden Karony requested a delay in his trial, arguing that Donald Trump’s potential crypto policies could lead to some charges being dropped.
📢 Trump’s administration has been seen as pro-crypto, and upcoming regulations could influence legal actions against crypto firms.
⚖️ However, Judge Komitee rejected Karony’s request, and the trial is set for April 7.
What’s Next?
🚨 Smith’s guilty plea marks a major moment in the SafeMoon investigation.
🔎 He could testify against other defendants and expose further fraudulent practices in the crypto space.
⏳ Karony’s trial is approaching, but the full consequences of this plea remain unclear.
💡 Is this just the beginning of more high-profile crypto lawsuits? Or will SafeMoon go down in history as one of the biggest crypto frauds, following in the footsteps of FTX? 🚀
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