<s>
SafeMoon	B-Application
LLC	O
is	O
a	O
cryptocurrency	O
and	O
blockchain	B-Application
company	O
created	O
in	O
March	O
2021	O
.	O
</s>
<s>
The	O
company	O
also	O
has	O
a	O
SafeMoon	B-Application
token	O
(	O
SFM	O
)	O
which	O
trades	O
on	O
the	O
BNB	O
Chain	O
blockchain	B-Application
.	O
</s>
<s>
The	O
SafeMoon	B-Application
company	O
has	O
released	O
a	O
minimal-function	O
cryptocurrency	O
wallet	O
and	O
has	O
announced	O
plans	O
to	O
release	O
other	O
cryptocurrency	O
products	O
.	O
</s>
<s>
SafeMoon	B-Application
was	O
released	O
in	O
March	O
2021	O
.	O
</s>
<s>
Upon	O
release	O
,	O
Vice	O
reported	O
that	O
between	O
March	O
14	O
and	O
April	O
21	O
of	O
2021	O
,	O
SafeMoon	B-Application
increased	O
in	O
value	O
by	O
23,225	O
%	O
following	O
celebrity	O
endorsements	O
from	O
musicians	O
Lil	O
 '	O
Yachty	O
and	O
Nick	O
Carter	O
,	O
YouTuber	O
Logan	O
Paul	O
,	O
social	O
media	O
hype	O
,	O
new	O
exchange	O
listings	O
,	O
and	O
retail	O
investors	O
.	O
</s>
<s>
At	O
that	O
time	O
,	O
Vice	O
said	O
that	O
"	O
cryptocurrencies	O
like	O
SafeMoon	B-Application
still	O
have	O
no	O
real-world	O
use.	O
"	O
</s>
<s>
These	O
celebrities	O
were	O
later	O
sued	O
by	O
many	O
SafeMoon	B-Application
investors	O
as	O
part	O
of	O
a	O
class-action	O
lawsuit	O
branding	O
SafeMoon	B-Application
to	O
be	O
a	O
part	O
of	O
a	O
pump	O
and	O
dump	O
scheme	O
.	O
</s>
<s>
After	O
the	O
substantial	O
rise	O
in	O
price	O
,	O
the	O
unknown	O
developers	O
of	O
the	O
token	O
appointed	O
Braden	O
John	O
Karony	O
as	O
the	O
CEO	B-Application
of	O
Safemooon	O
and	O
registered	O
as	O
a	O
Limited	O
liability	O
company	O
with	O
aims	O
of	O
providing	O
utility	O
to	O
the	O
token	O
.	O
</s>
<s>
In	O
May	O
2021	O
,	O
SafeMoon	B-Application
announced	O
making	O
a	O
presentation	O
to	O
The	O
Gambia	O
to	O
provide	O
"	O
technology	O
for	O
innovation	O
and	O
learning	O
purposes	O
"	O
.	O
</s>
<s>
The	O
project	O
was	O
dubbed	O
"	O
Project	O
"	O
(	O
the	O
misspelling	O
of	O
Phoenix	O
being	O
intentional	O
)	O
,	O
SafeMoon	B-Application
released	O
a	O
familiar	O
crypto	O
pitch	O
of	O
serving	O
the	O
"	O
unbanked	O
"	O
and	O
claimed	O
to	O
be	O
working	O
with	O
local	O
governments	O
to	O
adopt	O
the	O
token	O
as	O
a	O
local	O
currency	O
.	O
</s>
<s>
In	O
June	O
2021	O
,	O
the	O
project	O
began	O
beta	O
testing	O
of	O
the	O
SafeMoon	B-Application
wallet	O
.	O
</s>
<s>
Thomas	O
Smith	O
,	O
who	O
was	O
the	O
CTO	O
for	O
Safemoon	B-Application
,	O
left	O
the	O
company	O
in	O
December	O
2021	O
for	O
a	O
role	O
as	O
a	O
blockchain	B-Application
advisor	O
for	O
StrikeX	B-Application
,	O
however	O
,	O
was	O
dismissed	O
by	O
the	O
company	O
after	O
the	O
fraud	O
allegations	O
uncovered	O
by	O
Stephen	O
Findeisen	O
.	O
</s>
<s>
In	O
December	O
2021	O
,	O
SafeMoon	B-Application
developed	O
Version	O
2	O
of	O
their	O
token	O
(	O
SafeMoon	B-Application
V2	O
)	O
,	O
an	O
updated	O
version	O
of	O
the	O
SafeMoon	B-Application
contract	O
.	O
</s>
<s>
As	O
part	O
of	O
consolidating	O
to	O
V2	O
,	O
the	O
SafeMoon	B-Application
team	O
implemented	O
a	O
deadline	O
to	O
migrate	O
their	O
tokens	O
,	O
or	O
else	O
investors	O
would	O
be	O
faced	O
with	O
a	O
100%	O
tax	O
.	O
</s>
<s>
The	O
team	O
also	O
released	O
a	O
decentralised	O
exchange	O
titled	O
"	O
Safemoon	B-Application
Swap	O
"	O
as	O
the	O
only	O
place	O
where	O
this	O
migration	O
could	O
happen	O
.	O
</s>
<s>
In	O
April	O
2022	O
,	O
Safemoon	B-Application
announced	O
a	O
new	O
product	O
,	O
the	O
Safemoon	B-Application
card	O
.	O
</s>
<s>
The	O
Safemoon	B-Application
card	O
was	O
promoted	O
as	O
a	O
debit	O
card	O
that	O
can	O
be	O
used	O
to	O
pay	O
for	O
goods	O
using	O
SafeMoon	B-Application
(	O
and	O
other	O
cryptocurrencies	O
)	O
for	O
a	O
2.5	O
%	O
fee	O
.	O
</s>
<s>
Since	O
the	O
appointment	O
of	O
Karony	O
in	O
2021	O
,	O
SafeMoon	B-Application
has	O
announced	O
plans	O
to	O
launch	O
its	O
own	O
cryptocurrency	O
exchange	O
by	O
October	O
2021	O
,	O
however	O
,	O
this	O
was	O
pushed	O
to	O
December	O
2022	O
and	O
has	O
again	O
been	O
pushed	O
back	O
to	O
the	O
end	O
of	O
2023	O
.	O
</s>
<s>
The	O
company	O
also	O
has	O
plans	O
to	O
launch	O
a	O
blockchain	B-Application
,	O
hardware	O
wallet	O
,	O
and	O
to	O
become	O
a	O
macro	O
Internet	B-Operating_System
of	I-Operating_System
things	I-Operating_System
infrastructure	O
on	O
its	O
own	O
blockchain	B-Application
.	O
</s>
<s>
The	O
token	O
has	O
been	O
described	O
pejoratively	O
in	O
May	O
2021	O
as	O
a	O
"	O
meme	B-Protocol
coin	I-Protocol
"	O
alongside	O
Dogecoin	O
and	O
Shiba	O
Inu	O
,	O
with	O
much	O
of	O
its	O
value	O
attributed	O
to	O
the	O
result	O
of	O
the	O
2021	O
crypto	O
market	O
frenzy	O
.	O
</s>
<s>
The	O
developers	O
of	O
SafeMoon	B-Application
have	O
been	O
described	O
as	O
having	O
"	O
little	O
proof	O
of	O
previous	O
success	O
"	O
,	O
with	O
the	O
token	O
having	O
been	O
described	O
by	O
some	O
financial	O
experts	O
as	O
"	O
the	O
furthest	O
thing	O
from	O
safe	O
"	O
and	O
that	O
it	O
"	O
does	O
n't	O
do	O
anything	O
"	O
.	O
</s>
<s>
In	O
May	O
2021	O
,	O
the	O
V1	O
version	O
of	O
the	O
token	O
was	O
audited	O
by	O
security	O
auditing	O
firm	O
CertiK	O
,	O
which	O
identified	O
a	O
"	O
major	O
issue	O
"	O
that	O
the	O
project	O
's	O
owners	O
have	O
"	O
control	O
over	O
tokens	O
funded	O
by	O
SafeMoon	B-Application
's	O
seller	O
fee	O
"	O
.	O
</s>
<s>
An	O
owner	O
address	O
acquire	O
's	O
the	O
liquidity	O
pool	O
tokens	O
generated	O
by	O
the	O
Safemoon-BNB	O
pool	O
.	O
</s>
<s>
This	O
gives	O
the	O
owner	O
control	O
over	O
tokens	O
funded	O
by	O
Safemoon	B-Application
's	O
seller	O
fee	O
.	O
</s>
<s>
This	O
feature	O
was	O
later	O
the	O
subject	O
of	O
the	O
2022	O
Safemoon	B-Application
fraud	O
allegations	O
.	O
</s>
<s>
London	O
Capital	O
's	O
head	O
of	O
research	O
Jasper	O
Lawler	O
also	O
noted	O
that	O
the	O
Manual	O
Burn	O
aspect	O
of	O
Safemoon	B-Application
paired	O
with	O
the	O
controlling	O
companies	O
 '	O
large	O
stake	O
in	O
the	O
coins	O
opens	O
the	O
project	O
up	O
to	O
manipulation	O
by	O
the	O
project	O
controllers	O
.	O
</s>
<s>
After	O
the	O
price	O
of	O
a	O
SafeMoon	B-Application
token	O
multiplied	O
by	O
12x	O
during	O
a	O
single	O
week	O
in	O
April	O
2021	O
,	O
opinion	O
columnists	O
in	O
various	O
financial	O
magazines	O
likened	O
SafeMoon	B-Application
to	O
a	O
ponzi	O
scheme	O
or	O
pyramid	O
scheme	O
,	O
where	O
gains	O
to	O
early	O
investors	O
were	O
paid	O
only	O
by	O
incoming	O
investors	O
who	O
expected	O
a	O
similar	O
rate	O
of	O
return	O
,	O
with	O
some	O
citing	O
the	O
fact	O
that	O
each	O
transaction	O
sends	O
a	O
portion	O
of	O
the	O
transacted	O
value	O
to	O
existing	O
holders	O
of	O
the	O
token	O
,	O
as	O
well	O
as	O
a	O
portion	O
of	O
the	O
transacted	O
value	O
to	O
a	O
wallet	O
controlled	O
by	O
the	O
coin	O
's	O
authors	O
.	O
</s>
<s>
Furthermore	O
,	O
Safemoon	B-Application
's	O
token	O
economics	O
utilises	O
a	O
10%	O
sell	O
tax	O
.	O
</s>
<s>
In	O
April	O
2022	O
,	O
Stephen	O
"	O
Coffeezilla	O
"	O
Findeisen	O
,	O
a	O
prominent	O
independent	O
researcher	O
who	O
investigates	O
crypto	O
scams	O
accused	O
the	O
SafeMoon	B-Application
team	O
for	O
misappropriating	O
millions	O
of	O
dollars	O
.	O
</s>
<s>
According	O
to	O
Findeisen	O
,	O
Safemoon	B-Application
CEO	B-Application
Karony	O
,	O
has	O
been	O
removing	O
funds	O
from	O
the	O
liquidity	O
pool	O
which	O
is	O
the	O
primary	O
explanation	O
of	O
the	O
crypto	O
's	O
price	O
pattern	O
(	O
Figure	O
1	O
)	O
.	O
</s>
<s>
Findeisen	O
found	O
evidence	O
of	O
transactions	O
which	O
showed	O
Safemoon	B-Application
's	O
liquidity	O
wallet	O
moving	O
funds	O
to	O
a	O
wallet	O
dubbed	O
the	O
"	O
Gabe	O
(	O
6abe	O
)	O
wallet	O
"	O
which	O
withdrew	O
funds	O
to	O
a	O
separate	O
company	O
run	O
by	O
John	O
Karony	O
.	O
</s>
<s>
Former	O
SafeMoon	B-Application
CTO	O
;	O
Thomas	O
"	O
Papa	O
"	O
Smith	O
was	O
the	O
only	O
person	O
who	O
responded	O
to	O
Findeisen	O
's	O
claims	O
stating	O
that	O
funds	O
were	O
taken	O
from	O
the	O
“	O
locked	O
liquidity	O
pool	O
”	O
before	O
Karony	O
’s	O
appointment	O
.	O
</s>
<s>
He	O
sent	O
Smith	O
evidence	O
of	O
this	O
in	O
the	O
form	O
of	O
a	O
blockchain	B-Application
transaction	O
showing	O
an	O
outflow	O
of	O
36.7	O
trillion	O
tokens	O
from	O
the	O
liquidity	O
pool	O
,	O
dated	O
March	O
5	O
,	O
2021	O
.	O
</s>
<s>
On	O
February	O
18	O
,	O
2022	O
,	O
in	O
a	O
class-action	O
lawsuit	O
filed	O
against	O
the	O
SafeMoon	B-Application
that	O
alleged	O
the	O
company	O
is	O
a	O
pump	O
and	O
dump	O
scheme	O
,	O
Paul	O
was	O
named	O
as	O
a	O
defendant	O
along	O
with	O
musician	O
Nick	O
Carter	O
,	O
rappers	O
Soulja	O
Boy	O
and	O
Lil	O
Yachty	O
,	O
and	O
social	O
media	O
personality	O
Ben	O
Phillips	O
for	O
promoting	O
the	O
SafeMoon	B-Application
token	O
on	O
their	O
social	O
media	O
accounts	O
with	O
misleading	O
information	O
.	O
</s>
<s>
On	O
the	O
same	O
day	O
,	O
the	O
U.S.	O
11th	O
Circuit	O
Court	O
of	O
Appeals	O
ruled	O
in	O
a	O
lawsuit	O
against	O
Bitconnect	B-Protocol
that	O
the	O
Securities	O
Act	O
of	O
1933	O
extends	O
to	O
targeted	O
solicitation	O
using	O
social	O
media	O
.	O
</s>
<s>
Findeisen	O
,	O
who	O
had	O
just	O
shone	O
a	O
light	O
on	O
the	O
2022	O
SafeMoon	B-Application
fraud	O
allegations	O
supported	O
the	O
claims	O
that	O
Paul	O
and	O
Phillips	O
were	O
pumping	O
and	O
dumping	O
Safemoon	B-Application
tokens	O
during	O
this	O
time	O
which	O
saw	O
a	O
decline	O
of	O
96%	O
in	O
token	O
price	O
.	O
</s>
<s>
On	O
August	O
22	O
,	O
2022	O
,	O
it	O
was	O
documented	O
that	O
David	O
Portnoy	O
,	O
who	O
was	O
also	O
a	O
defendant	O
in	O
this	O
case	O
,	O
was	O
dismissed	O
from	O
the	O
lawsuit	O
after	O
it	O
was	O
revealed	O
that	O
he	O
never	O
received	O
any	O
compensation	O
from	O
Safemoon	B-Application
for	O
promoting	O
the	O
token	O
and	O
that	O
he	O
also	O
lost	O
his	O
investment	O
from	O
buying	O
SFM	O
.	O
</s>
<s>
In	O
May	O
2022	O
,	O
multiple	O
SafeMoon	B-Application
investors	O
filed	O
another	O
class	O
action	O
lawsuit	O
against	O
SafeMoon	B-Application
for	O
security	O
fraud	O
.	O
</s>
<s>
As	O
part	O
of	O
Project	O
,	O
a	O
separate	O
company	O
Emanations	O
Communications	O
Group	O
LC	O
(	O
ECG	O
)	O
was	O
set	O
up	O
and	O
led	O
by	O
Safemoon	B-Application
CEO	B-Application
John	O
Karony	O
's	O
mother	O
,	O
Jennifer	O
,	O
to	O
provide	O
antenna	O
technology	O
to	O
The	O
Gambia	O
.	O
</s>
<s>
It	O
was	O
claimed	O
that	O
Karony	O
funded	O
this	O
investment	O
from	O
Safemoon	B-Application
's	O
liquidity	O
pool	O
which	O
was	O
supposedly	O
locked	O
up	O
.	O
</s>
<s>
ECG	O
determined	O
that	O
John	O
Karony	O
created	O
too	O
many	O
regulatory	O
risks	O
and	O
that	O
due	O
to	O
multiple	O
lawsuits	O
filed	O
against	O
him	O
and	O
his	O
company	O
(	O
Safemoon	B-Application
)	O
,	O
were	O
uncomfortable	O
accepting	O
any	O
more	O
capital	O
investments	O
from	O
him	O
.	O
</s>
<s>
According	O
to	O
court	O
documents	O
,	O
John	O
had	O
been	O
disclosing	O
information	O
about	O
developing	O
technology	O
for	O
the	O
benefit	O
of	O
SafeMoon	B-Application
to	O
make	O
claims	O
on	O
SafeMoon	B-Application
’s	O
website	O
and	O
social	O
media	O
accounts	O
about	O
the	O
technology	O
.	O
</s>
