Former SafeMoon CTO Admits to Fraud, Exposes Insider Schemes

Thomas "Papa" Smith, the former chief technology officer of SafeMoon, testified in a New York courtroom this week, revealing how the decentralized finance project was designed to enable insiders to siphon investor funds. Smith, who has already pleaded guilty, appeared as a witness in the trial of John Karony, SafeMoon’s ex-CEO, and Kyle Nagy, the project’s creator. Both face charges of wire fraud, securities fraud, and money laundering.

The case hinges on activities during SafeMoon’s brief heyday in 2021. Smith admitted the project’s code permitted the Core team to withdraw millions from supposedly locked liquidity pools. "As soon as I start asking you to trust me, you shouldn’t," Smith told the court, acknowledging what he now recognizes as systemic deception.