SafeMoon fraud: SFM plummets following new allegations against protocol’s leadership

Key Takeaways:

  • Coffeezilla has alleged that SafeMoon was designed as a rug pull project from its inception.
  • String of Safemoon top officials quit the platform.
  • SFM market cap dropped from over $1bn in Feb. to $363M today.
SafeMoon Fraud
Coffeezilla has alleged that SafeMoon was designed as a rug pull project from its inception.

LAGOS (CoinChapter.com) — SafeMoon continues to experience negative outings in the news as new allegations of double-dealing have emerged against the leadership of the protocol.

Plagued by several crypto fraud allegations, the protocol was hit by another set by popular YouTuber Stephen Findeisen, commonly known as Coffeezilla.

Coffeezilla alleged that SafeMoon’s founder, lead developer, and CEO are actively stealing funds from the company’s investors. In addition, Coffeezilla disclosed that SafeMoon’s founder copied the protocol code from another rug pull project named Bee token in his latest post.

Coffeezilla claimed that Safemoon was a scam project designed as a rug pull since inception. The YouTuber further alleged that former executives of the protocol emptied the liquidity pool that falsely appeared locked to the rest of the world.

“The total amount of SafeMoon that came into Kyle’s wallet was 164 trillion tokens. Fast forward to mid-September to mid-December, this grossed him just under $10.3 million.”

SafeMoon Top Officials Pull Out Of Project

SafeMoon Fraud accusations also hold up as several of the project’s top officials recently pulled out.

Charles Karony, former Vice President of Operations at SafeMoon, recently stepped down. Karony’s resignation comes months after analysts warned investors about SafeMoon being a pump-and-dump token.

In a more controversial outing, SafeMoon Head of Products, Ryan Arriaga, “The Fud Hound,” also quit the company. While Arriaga tendered his resignation via his official Twitter handle, SafeMoon CEO John Karony said he was fired.

Karony said Arriaga was fired for breaches of ethics and violating company policy and confidentiality policies.

Kyle also stepped down and handed control of the protocol to lead developer Thomas “Papa” Smith. However, Coffeezilla has also alleged that Smith has also siphoned investors’ funds.

The YouTuber also accused Karony of stealing from the project. He claimed that Karony withdrew $3 million from the Bitmart payments and transferred it to Kyle’s wallet. Furthermore, SafeMoon promoter Ben Phillips had reportedly netted over $12 million by pumping and dumping the token.

SFM Plunges Following SafeMoon Fraud Allegations

Following news of SafeMoon Fraud allegations, the protocol native token has plummeted by more than 25% on the day, according to data from Coingecko.

SafeMoon fraud, SafeMoon fraud: SFM plummets following new allegations against protocol’s leadership
SafeMoon Price Chart (SFM). Source: Coingecko

SafeMoon, an altcoin project on the Binance Smart Chain (BSC), recently declined significantly. In the project’s early days, SFM exploded in price, resulting in a peak valuation of $5.75 billion.

However, the token market cap currently sits at $363.2 million from $1 billion in February 2022.

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SafeMoon fraud, SafeMoon fraud: SFM plummets following new allegations against protocol’s leadership

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