TechFlow news, on February 21, according to Cointelegraph, SafeMoon's Chief Technology Officer Thomas Smith pleaded guilty in Brooklyn federal court to charges related to a cryptocurrency fraud case. Smith admitted to conspiring to commit securities fraud and conspiracy to commit wire fraud, which carry maximum sentences of 25 years and 20 years, respectively.
The U.S. Department of Justice and the Securities and Exchange Commission accused Smith of participating in the fraud alongside SafeMoon CEO Braden John Karony and founder Kyle Nagy. Prosecutors said the three falsely claimed to investors that liquidity for the SafeMoon (SFM) token had been locked and was inaccessible, while in reality they were able to access and misappropriated over $200 million, using the funds for personal expenses such as luxury vehicles and real estate.
