CEO and CTO of SafeMoon Arrested – 267

Safe Moon executives are arrested by the Doj in fraud investigation coming from Coindesk today crypto company safe Moon CEO and chief technology officers were Arrested accused of withdrawing more Than $200 million to buy luxury cars and Homes from funds they told investors Were quote locked end quote according to The doj and the regulator that is a Super safe Moon huh The Department of Justice has the CEO And CTO of safe moon in custody but is Still looking for Creator Kyle naggi I Think or Nai I don't know how to Pronounce that last name in its Securities fraud case against the Executives the Securities and Exchange Commission is also pursuing a case that The company offered unregistered Securities the US Department of Justice Doj for short has arrested and charged Safe Moon's executive team with per Perpetuating a massive fraud on its Investors in a case also targeted Wednesday by the SEC for short of Securities and Exchange Commission safe Moon CEO John Kerney and chief Technology officer Thomas Smith were Arrested and the Creator M remains at Large according to the doj the safe Moon Executive team withdrew more than $200 Million from the project as detailed in The sec's complaint and they Misappropriated investors funds for

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Personal use authorities said quote as Alleged the defendants deliberately Misled investors and diverted millions Of dollars to fuel their greedy scheme And enriched themselves by purchasing a Custom Porsche sports car other luxury Vehicles and real estate and quote said Brien peace us attorney for the eastern District of New York in a statement now Obviously this is kind of going in Cor Ation with everything that's happening With FTX right now which we had Dissolution of of investor funds Essentially at that point investor funds Not being locked investor funds being Utilized for personal gain that sort of Stuff it's all kind of aligned with that And that shows the IM immaturity of of Course the crypto space in general you See it across the board right and you Even see it on the influencer side Happening over and over and over again Somehow a lot of influencers to like We've talked about in the past are still Getting away with basically murder at This point obviously not literal murder Well in some cases probably but for the Most part getting away with things that You know typical Trad traditional Finance doesn't have to deal with and That means just be extremely careful out There it's also why when I try to Approach Pro projects I'm going to lean More towards being skeptical towards any

Project than be positive about any Project because I think that's the way You should approach everything within Cryptocurrency right now because of Situations like this you don't want to Get caught up in either being invested In something like this or perpetuating This right if you're purchase or Purchasing and then also pushing safe Moon and then this comes down the Pipeline especially as an influencer That's on you and that is kind of one of Those things where you could get wrapped Up into something completely Accidentally I saw kind of a a a a Really interesting um post on actually Coindesk earlier that was talking about Sam bankman freed you know basically Crying in the courtroom and a lot of People are kind of like a you know he Deserves it blah blah blah but I do have A little bit of empathy there because I Do think to a certain extent he might Have been just completely stupid in some Cases and also thinking he wouldn't get Caught and so on and that feeling of you Know obviously being in deep deep deep can be extremely stressful I thought it's kind of weird that the Way we we address and approach a lot of This stuff um not to say that he Shouldn't be prosecuted but to say that Like obviously if I was in the same Situation I would be probably balling my

Eyes out in the courtroom of course That's why I approach everything with a Healthy amount of skepticism to avoid You know being put in these positions And also I try to keep everything Inhouse and just on me and I am the one In vesting and and and Mining and so on And I don't have to go out too far and Say that I'm you know getting other People's funds that's where it gets Really really sketchy but the safe Moon Devs and Smith known as Papa 35 were Charged with conspiracy to commit Securities fraud conspiracy to commit Wire fraud and moneya laundering Conspiracy in one example the doj said Smith diverted tokens to buy himself a Porsche 911 that's pretty sweet deal There I don't think I would have gone With a Porsche 911 11 I think I would Have gone with something else I go with Like an Audi R8 you know something like That or just like I'm I'm more like salt Of the earth I think I'm going for the Corvette but you know it is what it is The token sfm fell more than 30% on Wednesday coindesk attempts to reach out To the three through the company website And through their social media accounts Have been unsuccessful while facing Criminal charges the defendants were Also charged for security violations by The SEC quote unregistered offerings Lack the disclosures and accountability

That the law demands and they attract Scammers like Kyle who use these Vulnerabilities to enrich themselves at The expense of others end quote said David hirch chief of the SEC enforcement Division's crypto assets and cyber unit The agency also accused all three of Perpetuating a massive fraudulent scheme Through the UN registered sale of the Crypto asset Security safe moon was a meme coin that Rolled out in 20121 during the height of The previous bull market its team Promised users that Stak funds would be Locked in a liquidity pool but the SEC Said that the quote large portions of The liquidity pool were never locked end Quote and that Executives used funds to Buy homes travel and high-end cars this Is also something I think for a lot of Newbies that can be extremely confusing As to what safe Moon actually was Compared to what actual cryptocurrencies Are and I've done a few videos on this And I've clarified before but safe moon Was a token built on top of an actual Blockchain meaning that it's not a chain In and of itself and tokens in general Are going to be the riskiest assets to Invest in and you know a lot of this Stuff moves on over in into things like Sheba enu which is a token Etc like Where a lot of people get it confused Like what cryptocurrency actually is and

What the different pieces are and what They're meant for right a token should Be a representation of a one: one with Some other asset backing it for example In the future here in just a little bit On this show we're going to be talking About the E fyt token that was backed by Ergo and the whole Kur fuffle with coin Market cap and this is a distinction That I think should be made and so Giving you a little bit of a foreshadow There these distinctions are extremely Important but people should be aware of What the differences are and when we're Talking about tokens personally I stay Away from tokens by and large because of Their ability to be manipulated and so On and this means even though I might See a token skyrocketing like a Sheba Enu or something I will avoid it just Based off of principles because I Understand the the principles of Cryptocurrency and what the differences Are between a token and a coin or a Token and an actual blockchain that's Not to say that every token is going to Have these issues but it is something That gets a red flag in my book in General at one point in April of 2021 Smith assured investors that he Personally held no safe move Quote because I'm a software engineer End quote he's quoted as saying in the Indictment in the US District Court for

The eastern district of New York I don't Want to create a situation where my Decisions as CTO are affected by the Monetary gain of those Actions and that's why I've made this Separation for myself the safe Moon team Also allegedly used locked assets to Make large purchases of safe moon to Prop up its price and manipulate the Market the SEC said though the Executives had denied they personally Held safe Moon they repeatedly traded The token for their own benefit Generated millions in profit while Masking their proceeds through private Unhost wallets and pseud Anonymous Exchange accounts according to the doj Now this is something that can once Again be done across any project within Cryptocurrency and even at the base Layer one type Cryptocurrencies and so even we say Okay A red flag on a token you can still get Caught with a ton of issues in Cryptocurrencies that are fullon Blockchain basically what you want to Look at when you're looking at all these Projects is how difficult was it to Build right and this is something that You should take into consideration for Example if you have a Straight Fork of Bitcoin that just changed the names and Is a pretty lazy GitHub Hub clone of Bitcoin it's probably not going to be a

Good idea if all you have to do is clone A token and put it up and then have it Just you know powered by a different Blockchain completely then that is Probably a low effort coin the amount of Effort put into the project should give You a better example or a better idea of If that particular project is going to Avoid a lot of these traps that you see Across the cryptocurrency industry That's why when I did see early on like Caspa and the development cycle and the Groundup nature and so on that is why I Leaned towards it right I could see that That actually was interesting it's why Most recently I'm interested in fact Torn or fact as the token because it is A a novel idea within the blockchain Space it's also why I'm not as Interested in any token that gets Launched or Nfts or whatever Forks across the board We've had a plethora of forks too they Have been frankly quite crazy even During the bare Market where we have you Know a ton of Prague pal forks forks of Ravencoin we have Forks of you know neoa Going off all over the place like game Pass it the lower the effort The Le less likely it should be that You're interested in that project just To give you an idea and you can go Through the the Githubsign not Financial advice of

Course thanks for watching this clip From the crypto mining show you can Check out the full episode here and Don't forget to subscribe down here as Well you can also check out my crypto Mining ecourse at where you can Get a free month of supporter status With a purchase at sonof tech. also don't forget to check Out my merch underneath the video or at Shop.of I'll see you next Tuesday

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