Unknown entity drains $11.2m in liquidity via SafeMoon deployer contract

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On-chain monitoring alarms about uncommon $11.2 million transactions linked to a modified SafeMoon deployer contract, coinciding with the venture’s chapter proceedings.

In accordance with an X post revealed by Cyvers Alerts, an unidentified entity made modifications to SafeMoon‘s deployer contract, enabling the withdrawal of considerable liquidity from a number of swimming pools.

As of press time, the entity holds over $1.6 million in several tokens, together with Wrapped BTC (wBTC), Tether (USDT), and Pepe (PEPE), with the remaining extracted liquidity transferred to Ethereum, BNB Chain, and Polygon, in accordance with data from Etherscan.

Cyvers Alerts notes the weird actions commenced after the entity whitelisted an exterior deal with for withdrawal functions. It stays unclear whether or not these transfers are linked to the continued SafeMoon chapter case. As of press time, SafeMoon has not made any public statements on the matter. Amid the information, SafeMoon’s SFM token plunged by over 8%, in accordance with CoinMarketCap.

In mid-December 2023, SafeMoon initiated chapter proceedings with the U.S. Chapter Court docket within the District of Utah. The chapter submitting got here shortly after the U.S. Securities and Alternate Fee (SEC) leveled accusations towards SafeMoon and its key executives, founder Kyle Nagy, CEO John Karony, and CTO Thomas Smith, for securities legislation violations.

In accordance with the SEC, the trio carried out a “large fraudulent scheme,” allegedly manipulating SafeMoon’s market capitalization to $5.7 billion by means of techniques resembling wash buying and selling, misleading advertising and marketing methods, and deceptive statements relating to liquidity lock-up timelines. Whereas Karony and Smith have been arrested, Nagy stays at giant.

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