Fresh allegations emerge against SafeMoon leadership

SafeMoon is backmost successful the spotlight pursuing further allegations of double-dealing. However, the allegations are overmuch much terrible this time. YouTuber Coffeezilla, AKA Stephen Findeisen, accused SafeMoon’s founder, pb dev, and CEO of dipping into institution funds successful his latest exposé video.

SafeMoon’s laminitis is simply a antheral known lone arsenic Kyle, and precise small is known astir him beyond his online persona. Kyle allegedly copied the codification of different smaller rug propulsion task called Bee Token to make SafeMoon.

In the aboriginal days of the project, SafeMoon was mooning, and its token had exploded successful terms resulting successful a highest valuation of $5.75 billion. A loyal instrumentality basal formed astir the project, and influencers talked astir it constantly. There were adjacent rumors of a collaboration with Mastercard.

However, Findeisen alleges the task was designed arsenic a rug propulsion from its inception.

SafeMoon’s locked liquidity pool

Earlier successful April, Findeisen posted an exposé connected erstwhile SafeMoon promoter Ben Phillips and alleged that helium had netted implicit $12 cardinal by pumping and dumping the token.

Rogue influencers are 1 thing, but Findeisen’s latest station makes overmuch much damning accusations. This time, Findeisen claims foul play implicit SafeMoon’s locked liquidity pool, alleging that the excavation isn’t locked astatine all.

A liquidity excavation is simply a crowdsourced excavation of cryptocurrencies locked successful a astute contract. They dwell of token pairings utilized to facilitate trades connected a decentralized speech (DEX).

Locked liquidity pools mean the task owners/developers cannot entree the funds successful the pool. Locked pools springiness investors assurance that those successful complaint won’t bargain their funds.

However, successful analyzing SafeMoon’s wallets and blockchain activity, Findeisen recovered that laminitis Kyle had been dilatory rug pulling funds since the start.

“The full magnitude of SafeMoon that came into Kyle’s wallet was 164 trillion tokens. Fast guardant to mid-September to mid-December, this grossed him conscionable nether $10.3 million.”

In precocious 2020, a Twitter relationship called WarOnRugs called retired SafeMoon for its shady practices, which gave emergence to FUD, causing galore radical to question the project. However, the WarOnRugs was recovered to beryllium complicit successful a rug propulsion of their ain which gave SafeMoon a accidental to rally its assemblage against the accusations and determination past the lawsuit by having Kyle measurement down from the project.

Things instrumentality different twist

After Kyle stepped aside, Lead Dev Thomas “Papa” Smith took implicit arsenic the project’s leader.

The SafeMoon Army hailed him arsenic the SafeMoon’s savior, but according to Findeisen, helium excessively was connected the take, albeit craftier.

“When Kyle stole wealth helium conscionable took from the liquidity pool. But Papa was different, helium had a communicative astir it, helium justified himself by saying helium wasn’t rug pulling liquidity, helium was moving the funds, you cognize money migration from a Version 1 liquidity excavation to a Version 2.”

SafeMoon migrated to Version 2 astir December 2021 and required holders to migrate their wallets to the caller contract. Failure to bash truthful meant losing each funds successful a 100% tax, which forced V1 token holders to migrate.

Researchers recovered that Papa had actioned this process connected 18 abstracted occasions. In doing so, helium took $143 cardinal of liquidity.

“So Thomas withdrew liquidity 18 antithetic times. He really held connected to $143 cardinal worthy of liquidity. The sum of outgoing SafeMoon transactions was astir $100 million. Of that $100 million, $58.9 cardinal went to Bitmart and $8.1 cardinal went to different undisclosed wallets.”

Findeisen goes into further details astir SafeMoon’s CEO John Karony copying the Trust wallet codification to motorboat a autochthonal wallet; the institution jumping connected trends that pb to nowhere, an FBI investigation, and lawsuits.

Findeisen besides accused Karony of stealing from the project. This clip via Bitmart payments that should person gone into the liquidity pool. Instead, Karony received these payments successful his idiosyncratic wallet. Findeisen alleges Karony transferred $3 cardinal retired of the Bitmart payments to Kyle’s wallet.

Karony has refused to remark connected the Bitmart process. The company’s Twitter has not responded to the allegations.