Overview

SafeMoon was once a shining name in the cryptocurrency boom of 2021, promoted as a groundbreaking DeFi project with a profit-sharing model. However, that dream faded when CEO Braden Karony was convicted on charges of fraud, money laundering, and securities fraud in the USA. The case not only led to #Safemoon declaring bankruptcy but also undermined trust in DeFi projects. This article will detail the collapse of SafeMoon, from the scandal of the leadership team to the current status of SFM tokens, while drawing lessons for investors in the crypto market.

SafeMoon and false promises

In 2021, SafeMoon emerged as a phenomenon in the cryptocurrency market, attracting millions of investors with its unique tokenomic model. The project promised that each SFM transaction would incur a 10% fee, with 5% redistributed to token holders and the other 5% locked in a liquidity pool to ensure stability. This model was promoted as a way for investors to 'earn passive income' and drive up the token's value.

However, the USA Department of Justice has revealed the truth behind this promise. The liquidity pool that SafeMoon claimed to have 'locked' is actually still under the control of the leadership team, including CEO Braden Karony. Instead of protecting investors, Karony and his accomplices withdrew millions of USD from this pool for personal gain, from purchasing luxury real estate to high-end cars like Audi R8 and Tesla.

The million-dollar fraud case

Braden Karony, CEO of SafeMoon, was convicted by a federal court #USA on serious charges: securities fraud, online fraud, and money laundering. According to prosecutor Joseph Nocella, Jr., SafeMoon is not as 'safe' as its name suggests, but rather a sophisticated scam aimed at deceiving gullible investors. With these charges, Karony faces a maximum sentence of up to 45 years in prison.

The indictment reveals that Karony made over 9 million USD by manipulating the price of SFM tokens. He and his accomplices conducted multiple buy-sell transactions at peak prices, using anonymous wallets and unidentifiable accounts on exchanges to conceal their actions. These funds were used for luxury purchases, including custom trucks, making tracing extremely difficult.

Among the accomplices, Thomas Smith has pleaded guilty and is awaiting sentencing, while Kyle Nagy, co-founder of SafeMoon, remains at large. The investigation is being conducted by major agencies in the USA, including the FBI, IRS, HSI, and SEC, highlighting the seriousness of the case.

The consequences and collapse of SafeMoon

After the scandal, SafeMoon declared bankruptcy in December 2023 and was taken over by the VGX Foundation. From a praised DeFi project, SafeMoon quickly lost its luster. The price of SFM tokens plummeted dramatically, with the current market capitalization now only about 7.2 million USD (according to CoinMarketCap, May 22, 2025). The 24-hour trading volume of SFM does not even reach 1 million USD, a figure that is very small compared to the peak period in 2021.

In February 2025, SafeMoon announced its 'rebirth' as a memecoin on the Solana blockchain, after burning most of the SFM token supply. However, the new project lacks a development team, has no clear roadmap, and only operates as a community-managed memecoin. This marks a shift from an ambitious DeFi project to a nearly meaningless name in the crypto market.

Lessons for investors

The SafeMoon case is a costly warning for investors in the cryptocurrency market. Here are some points to note:

  • Thoroughly research the project: Do not invest solely based on marketing. Check the team, technology, and transparency of the project.

  • Be cautious of 'too good to be true' models: Projects promising high returns without clear foundations often carry significant risks.

  • Prioritize reputable platforms: Follow information from trusted sources like Binance, CoinMarketCap, or CoinGecko to stay updated on trends and accurate pricing.

Current SFM token price

According to CoinMarketCap (as of May 22, 2025), the market capitalization of SafeMoon (#SFM ) is now only about 7.2 million USD, with the price of each token much lower than at its peak. Investors need to be cautious when considering SFM, especially in the context that the project has lost its direction and now exists only as a memecoin.

Risk warning

Investing in cryptocurrencies, including tokens like SFM, carries high risks due to strong price volatility and the risk of fraud. The information in this article is for reference only and is not investment advice. Please conduct thorough research (DYOR) before making any investment decisions.