Key Takeaways:
- SafeMoon CTO Thomas Smith pleaded guilty to securities and wire fraud conspiracy in a $200M crypto fraud case.
- Co-defendants include CEO Braden Karony, who pleaded not guilty, and creator Kyle Nagy, who remains at large.
- Smith faces up to 45 years in prison, while Karony’s trial is set for April 7.
SafeMoon LLC’s Chief Technology Officer, Thomas Smith, has pleaded guilty to securities fraud conspiracy and wire fraud conspiracy in a $200 million cryptocurrency fraud case.
Smith withdrew his previous not-guilty plea in a Brooklyn federal court before Magistrate Judge Cheryl Pollak, who recommended that U.S. District Judge Eric Komitee accept the plea.
🚨JUST IN: SAFEMOON CTO THOMAS SMITH PLEADS GUILTY TO SECURITIES FRAUD AND WIRE FRAUD CONSPIRACY IN A MULTIMILLION-DOLLAR CRYPTO SCHEME, COURT FILINGS REVEAL
— BSCN Headlines (@BSCNheadlines) February 21, 2025
The charges carry a maximum sentence of 45 years in prison.
Smith was indicted in November 2023 alongside SafeMoon CEO Braden John Karony and project creator Kyle Nagy.
Prosecutors allege the trio misled investors by falsely claiming SafeMoon’s liquidity pool was locked, preventing fund withdrawals.
3 years ago we exposed SAFEMOON's fraud.
— Coffeezilla (@coffeebreak_YT) February 20, 2025
They told their community it was just "FUD".
Today their CTO Thomas Smith pled guilty. pic.twitter.com/MgUK6R0FcC
However, they allegedly misappropriated investor funds for personal luxury purchases, including cars and real estate.
SafeMoon’s market capitalization soared to as high as $8 billion before crashing nearly 50% in April 2021 when the fraud allegations surfaced.
Karony maintains his innocence and previously sought to dismiss the charges.
His trial is set to begin on April 7 after a request for delay was denied.
Nagy remains at large, with reports indicating he may be in Russia.
The case highlights ongoing regulatory scrutiny in the crypto industry as authorities crack down on fraudulent schemes.
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