SafeMoon's Chief Technology Officer Thomas Smith has changed his plea in a case involving $200 million in cryptocurrency fraud, admitting to conspiracy to commit securities fraud and conspiracy to commit wire fraud. Smith had previously pleaded not guilty to these charges but withdrew that plea in Brooklyn federal court. The case involves executives of SafeMoon LLC, including CEO Braden John Caroni and founder Kyle Nagy, who are accused of defrauding investors by selling SafeMoon tokens (SFM) and falsely claiming that their liquidity was locked. The U.S. Department of Justice and the Securities and Exchange Commission have charged them with misappropriating over $200 million for personal expenses. Smith and Caroni have been arrested, while Nagy is reportedly in Russia. Caroni has pleaded not guilty to the charges and requested a trial delay, which was denied by the judge.

The chief technology officer of SafeMoon LLC has submitted a guilty plea to two charges in a case that US prosecutors allege involves a multimillion-dollar crypto fraud scheme. A Feb. 20 filing to a Brooklyn federal court shows SafeMoon tech chief Thomas Smith appeared before Magistrate Judge Cheryl Pollak to withdraw his prior not-guilty plea and plead guilty to securities fraud conspiracy and wire fraud conspiracy. Judge Pollak recommended that US District Judge Eric Komitee — who is overseeing Smith’s case — accept the new plea. Wire fraud conspiracy carries a maximum sentence of 20 years in prison, while securities fraud conspiracy carries a maximum sentence of 25 years in prison. The Justice Department and the Securities and Exchange Commission filed simultaneous charges of securities and wire fraud conspiracy and money laundering conspiracy against Smith in November 2023 alongside SafeMoon CEO Braden John Karony and creator Kyle Nagy. They alleged the trio sold a token called SafeMoon (SFM) and falsely claimed to SFM buyers that the token’s liquidity was locked and they couldn’t access it — when they allegedly could and later diverted the funds to themselves. The SEC and prosecutors alleged the three executives siphoned off over $200 million from SFM and used investor funds for personal use to buy luxury vehicles and real estate. Smith and Karony were arrested at the time of the charges. Nagy is at large but is reported to have resurfaced in Russia. Related: SBF’s $1B forfeited assets include private jets, political donations: Court Karony has pleaded not guilty to the charges and moved to toss them in last April. Smith also filed to dismiss the charges in mid-September last year. Earlier this month, Karony asked a judge to delay his criminal trial , arguing that US President Donald Trump’s crypto policy promises could result in at least one of his charges being dropped. Judge Komitee knocked back the request and set for the trial to begin opening statements on April 7. Magazine: Legal issues surround the FBI’s creation of fake crypto tokens 

The Chief Technology Officer of SafeMoon pleads guilty in a $200 million cryptocurrency fraud case.