Internet Detective Coffeezilla Exposes $4 Billion SafeMoon Crypto Fraud

A YouTuber by the name of Coffeezilla who is known for exposing internet scams has recently launched a video exposing fraudulent activity by the founders of a popular crypto project called SafeMoon.

Coffeezilla, whose channel has over 1 million subscribers dropped the bombshell video less than 24 hours ago and the video has quickly racked up over 500,000 views.

Given the popularity of the project which at one point had a market cap above $4 billion, the #SafeMoon hashtag on Twitter quickly filled with both investors dismissing the video’s claims and others voicing disappointment with the findings.

Below you will find a comprehensive list of all the allegations made against SafeMoon as outlined in the video.

Please note: the investigation is ongoing and Coffeezilla has announced that the second part of the investigation will be released soon.

The Allegations

Coffeezilla makes a number of allegations in the video and these have been listed below.

Notably, some minor corrections have since been made and posted under his original Twitter post but the overall claims have stayed the same.

The alleged claims are as follows:

  1. Founder of SafeMoon, Kyle Nagy made false statements regarding the rugpull potential of the SafeMoon coin. Looking at the code, there are no in-built safety features that can prevent developers from stealing funds.

  2. A number of different members including CEO John Karony repeatedly said that SafeMoon’s liquidity was locked, thus preventing someone from maliciously removing funds. However, SafeMoon’s liquidity is currently not locked and never has been.

  3. Bee Token, which was the project that SafeMoon forked its code from later went on to rugpull the coin. This proves that SafeMoon again does not have in-built rug-proof safety features.

  4. SafeMoon was promoted as a “safe” project and the claims so far prove that this was not the case at all.

  5. Kyle removed $14,000 from the liquidity pool on March 5 2021 and then went on to remove liquidity 17 further times, making around $10 million in the process.

  6. Claims made about SafeMoon developer “Papa” rejecting a $2 million job offer by crypto project Ripple later turned out to be falsehoods as revealed by Ripple itself.

  7. Papa created an elaborate fund migration scheme to siphon funds away from the liquidity pool and obfuscate his tracks.

  8. Audio recordings revealed that SafeMoon developer Hank Wyatt was annoyed at John Karony for refusing to lock up liquidity, implying that Karony wanted to rug more liquidity from the pool.

  9. Promises made about SafeMoon’s Project Pheonix were nonsensical and lacked substance. No one including Karony himself knew what the project was actually about.

  10. Karony paid Kyle Nagy millions of dollars to leave the project quietly to prevent backlash from investors.

  11. SafeMoon has been or is still being investigated by the FBI.

  12. The SafeMoon Wallet is a complete clone of the popular cryptocurrency wallet, TrustWallet.

  13. SafeMoon’s transaction tax on BitMart Exchange was supposed to be forwarded back into the liquidity pool. Instead, Karony used the funds for whatever purpose he deemed fit.

  14. One wallet allegedly owned by Karony received $15 million in a stablecoin called Tether which was supposed to be directed to the SafeMoon liquidity pool but never was.

Rebuttals

Since being released, the video has caused quite the uproar on social media channels including Twitter, Telegram and YouTube.

Advocates of the SafeMoon project have posted rebuttals against many of the claims made by Coffeezilla.

While much of the claims made by either side remain speculation at this moment in time, it is worth keeping track of both arguments for a more representative account of events.

The rebuttals we have come across so far include:

  1. Coffeezilla has relied upon “haters” of the project for evidence of wrongdoings by SafeMoon. Their views are likely to be biased and warped.

  2. The investigation did not start from an unbiased point of view, but rather Coffeezilla decided that SafeMoon was a scam and then went on to look for evidence that reinforced his preexisting biases.

  3. Coffeezilla did not make the investigation in good faith but rather spun it in a way to gain more viewers.

  4. The video only focuses on the negatives and avoids any mention of the positive outcomes of the project.

  5. The Certik audit report was generally positive overall, scoring 87/100. Although Coffeezilla spun it to seem as though it was worse than it really was.

  6. The claims that the FBI are investigating SafeMoon are greatly exaggerated as the FBI allegedly found nothing wrong.

  7. The owners of the wallets outlined are not proven and are merely speculation.

  8. Coffeezilla targeted the SafeMoon project because it has a huge community and knew his video would get many clicks.

As mentioned, Coffeezilla has yet to upload the second part of his investigation which will be uploaded some time in the future.

However, at the end of the first video, there was a short clip teasing an interview with one of the project’s developers called Papa.

Be sure to check back this page for future updates.



This news is republished from another source. You can check the original article here.

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