In his most extensive investigation to date, internet sleuth Coffeezilla has fired a laundry list of allegations at SafeMoon and its founders.
Coffeezilla went as far as to allege that SafeMoon founders siphoned SAFEMOON tokens from the liquidity pool, or in the case of CEO John Karony, intercepted tokens before they could even reach the pool.
In the aftermath of the video release, Coffeezilla’s expose divided the SafeMoon community. A number of angry users were quick to demand answers on the community Discord but others dismissed the story as nothing more than a malicious campaign of fear, uncertainty, and doubt (FUD).
As one skeptical user stated, “Spoiler alert: I skipped through it. It’s old FUD.”
“So same old reheated leftovers of FUD pasta from last year? I was hoping for at least some sprinkling of cheddar on top,” said another.
While a number of the allegations do catalog historical difficulties at SafeMoon, some of the revelations from the latest Coffeezilla investigation are based on new research and information. In particular, Coffeezilla claims to have uncovered the addresses of wallets belonging to its founder Kyle Nagy, and CEO John Karony. So what exactly is Coffeezilla alleging?
Reheated FUD, or something more?
In combination with the recent class-action lawsuit against SafeMoon, the long list of claims against SafeMoon does not make for positive reading. The claims are as follows:
- SafeMoon founder Kyle Nagy promoted SafeMoon under false pretenses, claiming that no rug of the coin was possible. SafeMoon code has no in-built safety features which would prevent a rug or the theft of funds.
- Team members including CEO John Karony, told ordinary investors that SafeMoon’s liquidity was locked, but that no such lock exists. SafeMoon’s “locked” liquidity pool is not locked now and never has been.
- That “Bee Token”, the project from which SafeMoon lifted its initial code, was a rug pull, making it highly improbable that the code has any safety features to prevent a rug.
- The above three points alone show that the “safe” in SafeMoon is a falsehood.
- On March 5 2021, Kyle removed $14,000 from the liquidity pool. He went on to remove liquidity a further 17 times, taking a total of 164 trillion SAFEMOON tokens. In total Kyle made around $10.3 million from these liquidity pool raids.
- Claims made about and by SafeMoon developer Papa were false, including the flex that Ripple (XRP) offered him $2 million to work for them. Team members at Ripple claimed to have never heard of Papa.
- Papa later created an elaborate “fund migration” story to help him siphon funds from the SafeMoon liquidity pool into wallets under his control. Rather than simply moving SAFEMOON tokens from one liquidity pool to another during the migration process, Papa instead used BNB tokens to purchase additional SAFEMOON tokens for the newly created pools. The short term effect of these large purchase orders was to pump the value of SAFEMOON. The old SAFEMOON tokens from the previous liquidity pool were then collected by Papa so he could dump the market at a later date.
- Papa held on to “migrated” liquidity on 18 occasions, to a value of $143 million dollars.
- Audio recordings of former SafeMoon developer Hank Wyatt explicitly state that John Karony refused to lock up liquidity, and that Karony wanted to rug more liquidity from the pool.
- That SafeMoon’s project Pheonix [sic] is a completely meaningless endeavor of no substance whatsoever. Project Pheonix is a Karony misspelling of the word phoenix that he is simply too pig-headed to admit to and correct.
- That project Pheonix is Karony’s pet project and it reflects on Karony and his directionless leadership. Pheonix initially started out as a way to “bank the unbanked” in Africa, then pivoted to a windmill and clean energy project, and then became a way to burn tokens. “Pheonix” remains a misspelled name in search of a purpose.
- That senior figures at SafeMoon grew so tired of Karony, Phoenix, and the vagaries of SafeMoon’s leadership, they created Piggybank token to escape SafeMoon.
- When Piggybank failed, the breakaway group, which included Hank Wyatt, attempted to leverage their insider knowledge of SafeMoon (and control of its social media channels) to blackmail Karony. Wyatt was later exposed as seeking a $3 million severance package.
- Karony paid Kyle Nagy millions to ensure he would go away quietly.
- That SafeMoon’s Pheonix windmill project is the entirely copied homework of a project called Semtive.
- The SafeMoon wallet is a 1:1 copy of TrustWallet with a SafeMoon logo slapped on it.
- To incentivize users to migrate from version 1 of SafeMoon token (SAFEMOON) to version 2 of the SafeMoon token (SFM), the company initiated a 100% tax on all v1 token transfers. The confusion resulted in many users losing all of their funds. Among the victims of this policy was Dave Portnoy, the host of Barstool Sports, who dubbed SafeMoon, “The worst coin that ever existed.” Portnoy initially invested $40,000 in SAFEMOON. From that $40K investment the sum of Portnoy’s holdings is now around $100.
- The 100% tax policy resulted in losses to ordinary users of $102 million dollars. The lost money went into SafeMoon’s unsafe and unsecured liquidity pool.
- That SafeMoon team member Ryan Arriaga, aka The Fud Hound, promised that SafeMoon users would be made whole for their losses. Soon after, and before Arriaga could make good on his promise, he was quickly resigned from the company.
- According to Hank Wyatt, SafeMoon is or has been under investigation from the FBI.
- That SafeMoon team members have engaged in the preemptive destruction of private messages and other data in fear of further legal investigations. The company is currently facing a class action lawsuit.
- An anonymous insider exposed two wallet addresses which he claims belong to Kyle Nagy and John Karony.
- SafeMoon’s transaction tax on the Bitmart exchange is sent directly to ‘developers’ instead of the liquidity pool. Rather than forward this money to the liquidity pool as presumed by Bitmart, John Karony instead uses the funds for whatever purpose he deems fit.
- One wallet allegedly owned by Karony has received $15 million in Tether from Bitmart. Around $3 million in funds from this Karony controlled wallet have gone to Nagy. None of the money received by this wallet has been forwarded to the SafeMoon liquidity pool.
It’s not over yet
In a final shot fired across the bows of SafeMoon and its team, Coffeezilla has teased further revelations about the project in the near future. Whether SafeMoon investors find the next round of claims any more convincing than the last remains to be seen.