Unusual $11.2 Million Transactions Raise Concerns Amid SafeMoon’s Bankruptcy Saga

Unusual $11.2 Million Transactions Raise Concerns Amid SafeMoon’s Bankruptcy Saga

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.


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.


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.