Theft of *another* $8 Million Dollars by Safemoon CEO, and holders are thanking him for it.

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In all my years of watching the crypto market, this is probably the most bizarre thing I’ve seen yet.

I’ll try and do a super quick catch up with no added fluff.

Safemoon has a “locked” liquidity pool, meaning they can’t just withdraw the BNB or Safemoon tokens. It’s locked til 2025.
It’s one of several LP’s, which aren’t locked.
They moved from V1 token to V2, with a new unaudited contract
The moving process is widely considered a honeypot, with investor losses tallying over $5m due to being taxed 100% if you don’t move in exactly the right way.(see previous post)

So May 11th was a very perilous time for Safemoon holders. Amidst the deepening bear market and failure of the Mandala launch ($17 bucks in 24hr volume), Safemoon’s token price had dropped 48% in week to make a new low on the 11th of just $0.000289 per token (a 98% loss from the V1 ATH of $0.014 – price adjusted for V2)

Safemoon LLC posted this statement;

In connection with the migration of SFMV1 to SFMV2, SafeMoon is seeking to migrate BNB held in LPs associated with SFMV1 into LPs associated with SFMV2. In connection with that migration, SafeMoon may from time to time acquire SFMV2 in the open market, subject to market conditions and other factors.

All of a sudden, Safemoon pumped 274% in a few hours.

What the fuck happened there?

You know that locked Liquidity pool? That’s only half the story. There are many other unlocked LP’s, and the Safemoon developers have been dipping their dirty little hands in and scooping out the liquidity.

Let’s be clear here.

SAFEMOON LLC ARE THE CUSTODIANS OF THESE FUNDS, THEY DO NOT OWN THESE TOKENS

Safemoon LLC, and other Cryptocurrency tokens (in the DeFi space or otherwise) get funds like this:

Pre-sale – selling minted tokens directly for ETH, BNB etc.
Selling tokens minted throughout the token’s life Collecting fees etc.

With Safemoon LLC, they held a “””Fair Launch””” where tokens were not advertised in any capacity and yet they managed to secure thousands of dollars worth of BNB. They also have the famed 10% buy and 10% sell tax, where a portion of fees are allocated to devs. Other than that, they have no other ways to accumulate funds.

Apart from the liquidity pool.

When people buy and sell Safemoon, it’s done through the liquidity pool which contains a pairing of tokens. X Safemoon per 1 BNB, which dictates the price. Those tokens come from the community. They are not Safemoon LLC’s tokens. When Safemoon sells Mike someone 1,000,000 Safemoon tokens, and then Mike sells those tokens for 1 BNB, Safemoon LLC doesn’t own that 1,000,000 Safemoon or the 1 BNB.

Within minutes of posting the above on Twitter & Discord, Safemoon LLC started dumping V1 tokens by the trillions.

Here is one such transaction, the wallet ending in 76bc is known as the “CFO wallet” (and since Safemoon has no CFO any more, it’s John Karony the CEO)

In this transaction, 2.4 Trillion V1 Tokens were swapped for 883 BNB worth $276.8K.

In total, this wallet extracted 37 Trillion V1 tokens for 22,894 BNB from the unlocked V1 Liquidity pool, in addition to withdrawing 2,296 BNB from a Binance Hot Wallet

That’s 25,190 BNB.

$7,896,480

And what was done with this BNB? Minutes after accumulating $8 Million bucks of investors money, Safemoon LLC bought 7,965,639,635 Safemoon V2 tokens on the open market, spiking the price up nearly 4x over, which of course…

A whale immediately took advantage of and thanked John & Co. for the exit liquidity.

The problem here is that Safemoon LLC neglected to move the LP in a proper manner. They could have just withdrawn the BNB & V1 tokens, burned the V1 as they’re obsolete, then simply deposited the BNB in the V2 Liquidity Pool.

Instead, the CEO chose to buy V2 tokens on the open market – inflating the price of the asset, while securing almost 8 Billion V2 tokens for himself. The CEO has therefore enriched himself at the holders expense.

And yet, all over Twitter, Reddit & Discord, folks are praising him for “4D Chess”. WARNING: Link will melt your brain. Their CEO has enriched himself using money that should be meant for the liquidity pool, provided exit liquidity for a whale and opened themselves up to even more legal action. And they are thanking him for it.

Oh, and he clearly has no intention of returning it to all the poor people who lost their funds on the ruthless 100% tax.

Insane.

submitted by /u/TNGSystems
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