Today, many crypto enthusiasts are on high alert following revelations of peculiar transactions totaling $11.2 million linked to a modified SafeMoon deployer contract. The distressing development comes amidst the project’s ongoing bankruptcy proceedings, sending shockwaves through the digital asset community.
Reports from Cyvers Alerts indicate that an unidentified entity manipulated SafeMoon’s deployer contract, facilitating the withdrawal of substantial liquidity from various pools. The entity, whose identity remains undisclosed, currently holds a staggering $1.6 million in assorted tokens, including Wrapped BTC (wBTC), Tether (USDT), and Pepe (PEPE). Etherscan data further reveals that the extracted liquidity has been diversified across Ethereum, BNB Chain, and Polygon.
🚨NEWS🚨Our system detected unusual transactions involving @safemoon.
The deployer added an address as an approveLiquidityPartner at https://t.co/ayFhE3fAgN, which then removed liquidity from various pools, transferring $11.2M to https://t.co/thIHUqF3uW on $ETH, $BNB and… pic.twitter.com/iJofry10sj— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) February 12, 2024
The eyebrow-raising transactions commenced shortly after the entity whitelisted an external address for withdrawal purposes, raising questions about the integrity of SafeMoon’s ecosystem. However, the connection between these transactions and the ongoing bankruptcy case remains ambiguous, with SafeMoon yet to issue a public statement on the matter.
🚨 #SAFEMOON UPDATE 🚨
Federal Bureau of Prisons posted that John Karony was released February 9th, 2024.
It looks like John's bail request was APPROVED.
THANK YOU to the lawyers for your hard work to make this happen!
WHAT IS DEAD MAY NEVER DIE#SAFEMOONARMY #SAFEMOONFAMILY pic.twitter.com/FWteIpjOPX
— SFM 1$ (@sfmshahin) February 10, 2024
The fallout from these revelations has been swift, with SafeMoon’s SFM token plummeting by over 8%, as reported by CoinMarketCap. This latest blow follows SafeMoon’s turbulent journey, which saw the initiation of bankruptcy proceedings in mid-December 2023 amid allegations of securities law violations by the U.S. Securities and Exchange Commission (SEC). The accusations, targeting key executives including founder Kyle Nagy, CEO John Karony, and CTO Thomas Smith, allege a wide-ranging fraudulent scheme aimed at inflating SafeMoon’s market capitalization through deceptive practices.
While Karony and Smith have been apprehended, Nagy remains at large, leaving investors grappling with uncertainty amidst SafeMoon’s tumultuous legal battle.
