EXCLUSIVE: Ex-SafeMoon CTO admits rug pull, details insider exemptions

By: bitcoin ethereum news|2025/05/09 03:15:02
0
Share
copy
“As soon as I start asking you to trust me, you shouldn’t.” That was Thomas “Papa” Smith’s pithy summation today of the fundamentally fraudulent nature of SafeMoon, a DeFi protocol whose centralized contract features allowed a core team to extract tens of millions of dollars from liquidity pools (LP) it had represented as sacrosanct. Smith testified for the third consecutive day in the trial of John Karony, former SafeMoon CEO. Smith, Karony, and SafeMoon creator Kyle Nagy are charged with wire fraud, securities fraud, and money laundering in connection with SafeMoon, which thrived for just a scant few months in 2021 before evidence of embezzlement emerged. Smith has pleaded guilty to the charges and is cooperating with government prosecutors . This morning, he detailed an array of deceptions and backdoors allegedly used to defraud investors. Prosecutors shared a series of 2021 “Ask Me Anything” (AMA) videos recorded by Karony, Smith, and Ben Phillips, an influencer paid by SafeMoon to promote the currency. In those videos, Smith and Karony described how revenue from SafeMoon transactions on exchanges like BitMart would be directed back to a Pancakeswap liquidity pool. Smith testified that in reality, he “never observed” the recapture of these funds. The BitMart funds were paid out in USDT, a stablecoin not compatible with SafeMoon’s Pancakeswap pools. He further described being sent $500,000 worth of SafeMoon tokens by Nagy, tokens Smith said would have been “acquired from the liquidity pool.” Such withdrawals are at the heart of the charges against Karony, who prosecutors say misled investors about the use and availability of funds in the liquidity pool. John Karony trial starts with a confused witness and SafeMoon merch Read more: Arbitrum, Optimism, and Base are fighting over $52 billion DeFi pie Karony’s defense is attempting to make the case that he was transparent. In AMAs and tweets presented in evidence, Karony stated that the LP could be tapped as a “last resort” for operational costs, but Smith testified today that “it was used for things that were not emergencies.” Smith also detailed an “exclude from tax” function only available to the controller of the main SafeMoon contract wallet, which was used to exempt insiders’ wallets from the 10% fee on all transactions that was the core of SafeMoon’s value proposition. In the most striking testimony of the morning, Smith recalled the transformation he experienced after receiving the $500,000 worth of SafeMoon from Nagy. “Previously to all of that, I had a very strong moral compass... After I had the money, I stopped asking questions. I cared deeply about the amount that I had. “I became that monster I was talking about.” Got a tip? Send us an email securely via Protos Leaks . For more informed news, follow us on X , Bluesky , and Google News , or subscribe to our YouTube channel. The post EXCLUSIVE: Ex-SafeMoon CTO admits rug pull, details insider exemptions appeared first on Protos. Source: https://protos.com/exclusive-ex-safemoon-cto-admits-rug-pull-details-insider-exemptions/

You may also like

LALIGA Match Report: Vinícius scores as 10-man Real Madrid secure a 3-2 comeback victory in Madrid derby

In the early hours of March 23, 2026, Round 29 of LALIGA delivered a headline clash at the Santiago Bernabéu. Real Madrid hosted their local rivals, Atlético de Madrid, in a high-stakes encounter. Under referee José Munuera, the match unfolded at a fierce pace, packed with physical duels and momentum swings. After a five-goal thriller, Real Madrid held firm for a 3–2 home win, taking all three points. They remain second on 69 points, now four behind leaders Barcelona.

From a numbers standpoint, Real Madrid stayed composed under pressure, completing 526 passes with a 52.4% share of possession. Atlético struck first in the 33rd minute through Lookman. After the break, Real Madrid flipped the game: Vinícius converted a penalty to level, then Valverde fired them ahead. Molina pulled Atlético back on level terms, but Vinícius stepped up again in the 72nd minute to seal the win. Late drama followed as Valverde saw red, forcing Real Madrid to defend deep with ten men through the final stretch. Atlético's aggressive approach—12 fouls and 4 yellow cards—kept the pressure on, but they couldn’t stop the comeback.

WEEX Insights: As the official LALIGA partner in the Hong Kong and Taiwan regions, WEEX sees this win as a masterclass in control under pressure. Even after a red card and constant attacks, Real Madrid stayed sharp and executed with precision. That same discipline—staying calm in volatile moments and acting with clarity—reflects the core trading mindset WEEX stands for. LALIGA fan campaigns are coming soon—celebrate the game with WEEX.

About WEEX

Founded in 2018, WEEX has developed into a global crypto exchange with over 6.2 million users across more than 150 countries. The platform emphasizes security, liquidity, and usability, providing over 1,200 spot trading pairs and offering up to 400x leverage in crypto futures trading. In addition to the traditional spot and derivatives markets, WEEX is expanding rapidly in the AI era — delivering real-time AI news, empowering users with AI trading tools, and exploring innovative trade-to-earn models that make intelligent trading more accessible to everyone. Its 1,000 BTC Protection Fund further strengthens asset safety and transparency, while features such as copy trading and advanced trading tools allow users to follow professional traders and experience a more efficient, intelligent trading journey.

Follow WEEX on social media

X: @WEEX_Official 

Instagram: @WEEX Exchange

 Tiktok: @weex_global 

Youtube: @WEEX_Official 

Discord: WEEX Community 

Telegram: WeexGlobalGroup

LALIGA Match Report: Araujo seals 1–0 win as Barça tighten grip on top spot

In the early hours of March 22 (Beijing Time), Barça edged Rayo Vallecano 1–0 at Camp Nou in a key Round 29 clash. The hard-earned win lifts Barça to 73 points, strengthening their hold on first place.

Barça controlled the game with 61% possession and a sharp 89% passing accuracy (460 passes). Rayo pushed back with intensity, earning 9 corners, but Barça's defense stayed solid. Yellow cards for Raphinha, Yamal, and Cubarsí highlighted the physical edge of the match. Second-half subs like Rashford and Olmo added fresh energy to help see out the result. Rayo remain 14th on 32 points.

WEEX Insights: As the Official LALIGA Partner in HK & TW, WEEX sees Barça’s 89% passing accuracy as a clear example of high execution with minimal error. Staying precise under pressure and finding the breakthrough reflects the same disciplined approach used in rational trading.

LALIGA interactive campaigns are coming soon—stay tuned with WEEX ⚽️

About WEEX

Founded in 2018, WEEX has developed into a global crypto exchange with over 6.2 million users across more than 150 countries. The platform emphasizes security, liquidity, and usability, providing over 1,200 spot trading pairs and offering up to 400x leverage in crypto futures trading. In addition to the traditional spot and derivatives markets, WEEX is expanding rapidly in the AI era — delivering real-time AI news, empowering users with AI trading tools, and exploring innovative trade-to-earn models that make intelligent trading more accessible to everyone. Its 1,000 BTC Protection Fund further strengthens asset safety and transparency, while features such as copy trading and advanced trading tools allow users to follow professional traders and experience a more efficient, intelligent trading journey.

Follow WEEX on social media

X: @WEEX_Official

 Instagram: @WEEX Exchange 

Tiktok: @weex_global 

Youtube: @WEEX_Official 

Discord: WEEX Community 

Telegram: WeexGlobalGroup

These days, even hackers are losing money

Although hackers possess excellent skills and can complete a meticulous harvest in a matter of hours, the market does not care where the chips come from; in the face of a bear market, everyone is treated equally.

Arm Chips In-House: Rewire News Brief

For Intel and AMD, the x86 Moat Just Got a Little Less Secure

IOSG: Stablecoin Reshaping Asia Cross-Border Payments? Strategic Landscape and Investment Opportunities Analysis

Stablecoins have not truly addressed the two core pain points of domestic settlement and exchange rate conversion.

\$73 Billion OpenAI Aims for IPO: Drops Sora, Snubs Disney, Puts Microsoft in Risk Factors

Altman is Telling a Growth Story in Subtraction

Popular coins

Latest Crypto News

Read more