- Safemoon CTO Thomas Smith has been convicted of $ 200 million in encryption fraud.
- The US assistant was arrested in 2023 with the CEO of Braden John Karony with Safemoon EXEC.
Thomas Smith, the chief technical director of Safemoon LLC, convicted of two charges of securities fraud and wire fraud plot.
Smith convicted the prosecution of the Brooklyn Federal Court on February 20.
The former director, Safemoon CTO, refused to claim and changed the coordination, and acknowledged his role in a system where investors would buy more than $ 200 million.
According to the court document, Smith did not withdraw the previous guilty ruling based on the latest development of the Justice Department and the US Securities and Exchange Commission in front of Cheryl Pollak’s security judge.
SafEMOON CTO’s conviction
In his petitions, Safemoon CTO admitted that he misunderstood investors on the state of liquidity.
He also agreed to make false claims of assets locked and unacceptable. Smith and Safemoon CEO Braden John Karony have shifted funds for personal purposes, the prosecution claimed. Safemoon applied for bankruptcy in December 2023.
Judge Pollock recommended that Eric Komiteee, a US local judge, would accept Smith’s new petition.
Blockchain and Internet detective Coffeezilla mentioned the petition change.
Three years ago we exposed Safemoon’s morale.
They just said “Fud” in their community.
Their CTO Thomas Smith was convicted today. pic.twitter.com/MGUK6R0FCC-Coffeezilla (@coffeebreak_yt) February 20, 2025
Judge Komitee accepts a petition of Smith, and the sentence means a 20 -year imprisonment for a front fraud plot. Safemoon EXEC faced a rod of up to 25 years with securities fraud.
The employee was arrested
DOJ and SECs for Smith, Karony and Safemoon producers Kyle Nagy come from the investigation of the 2023 encryption project.
In November 2023, the US prosecution sued cryptocurrency management for investors who are misunderstood in relation to SFM tokens. The fare included a plot for general fraud, securities fraud and money laundering.
According to Proscutors, the defendant used more than $ 200 million in the investor fund to spray high -end cars and real estate from other expensive purchases. The law enforcement agency quickly arrested the CTO and CEO immediately after DOJ’s prosecution, but SFM producer Kyle Nagy still remains.