Unusual Transactions Detected in SafeMoon Deployer Contract Amid Bankruptcy Proceedings
An on-chain tracking system has raised concerns about an $11.2 million transaction associated with a modified SafeMoon deployer contract. These transactions coincide with the ongoing bankruptcy proceedings of the SafeMoon project.
According to a post by Cyvers Alerts, an unidentified entity made modifications to SafeMoon’s deployer contract, allowing for the withdrawal of significant liquidity from multiple pools. The entity currently holds more than $1.6 million worth of various tokens, including wBTC, USDT, and PEPE. The remaining extracted liquidity has been transferred to Ethereum, BNB Chain, and Polygon.
Withdrawal Address Whitelisting Triggers Unusual Movements
The abnormal movements of funds began after the entity whitelisted an external address for withdrawals. It is still unclear whether these transfers are connected to the ongoing SafeMoon bankruptcy case. SafeMoon has not yet commented publicly on this matter. Following this news, the SFM token experienced a decline of over 8% in value.
SafeMoon’s Bankruptcy Filing and SEC Accusations
In December 2023, SafeMoon initiated bankruptcy proceedings with the U.S. Bankruptcy Court in Utah. This action came shortly after the U.S. Securities and Exchange Commission (SEC) accused SafeMoon and its key executives, Kyle Nagy, John Karony, and Thomas Smith, of securities law violations.
The SEC alleges that the trio engaged in a “massive fraudulent scheme,” manipulating SafeMoon’s market capitalization to $5.7 billion through tactics like wash trading, deceptive marketing strategies, and misleading statements about liquidity lock-up timelines. While Karony and Smith have been arrested, Nagy remains at large.
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