Safemoon tanks 26% After YouTuber accuses Top Management of Possible Fraud

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YouTuber Stephen Findeisen ‘Coffeezilla‘ had released a video last week accusing former-Safemoon employee turned influencer Ben Phillips of indulging in a $12 million pump and dump scam. He alleged that Ben tweeted positively about Safemoon to his followers but sold the tokens after it pumped in the sidelines. You can read Coffeezilla’s allegations on how Ben indulged in the scheme here.

Coffeezilla released another Netflix-style video today accusing the top management of Safemoon of indulging in possible fraudulent activities. However, these are the accusations made by the YouTuber only and are not proven by a court of law. The team does not stand guilty in any court at press time.

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“The creators of Safemoon are now being sued and investigated by the FBI,” stated Coffeezilla in his latest video titled, “I UNCOVERED A BILLION DOLLAR FRAUD.”

He goes on with his allegations saying that he uncovered a series of fraudulent behavior where the top management made money with the token. Coffeezilla alleged that a man named Kyle started Safemoon but “very little is known about him.” He depicted a series of tokens in the video which Kyle launched but eventually failed. The YouTuber then claimed that Kyle’s success came after he started Safemoon.

Source: YouTube Grab / Coffzilla

The YouTuber claims that the anonymous Kyle hired John Karony, and Thomas Smith (Papa), among others into Safemoon during its inception. Coffeezilla claimed the hiring was done at the “heat of the moment” and joked that they are the “Incompetent Avengers”.

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Coffeezilla Accuses Safemoon CEO John Karony of Possible Fraud

The YouTuber has accused Safemoon CEO John Karony of possible fraud. “As I started my investigation the first thing I realized is that Karony behaves differently than Kyle and Papa”. He alleged that Karony didn’t deposit the 5% liquidity into the liquidity tax pool. He also alleged that Kyle kept withdrawing from the liquidity pool during the inception of the token.

Source: Coffeezilla

The YouTuber then accused the Safemoon team of paying BitMart to get SFM onboard for trading on its platform. He shared a screenshot of an email that read, “As for the service fee, Safemoon paid BitMart for listing.”

He alleged that BitMart returned 5% directly to the Devs so that they can add the 5% to the liquidity pool. “Instead of sending it to the LP, they sent it directly to the developers to do it.”

YouTube / Coffeezilla

Coffeezilla alleged that the 5% LP went to Karony’s wallet totaling up to $15 million. He alleged that a portion of the LP amount was moved out of his wallet and went straight to Kyle’s address, instead of the liquidity pool.

Coffeezilla / YouTube

You can watch the full video below:

Right after the video was released, Safemoon tanked by 26% today and is now down in double digits. At press time, SFM was trading at $0.00066798 and is down -13.9% in the 24-hours day trade.

Credit: Source link

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