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Alleged $11.2 Million Liquidity Drain via Modified SafeMoon Contract Raises Concerns

Unidentified Entity Drains Liquidity: Concerns arise as an unknown entity orchestrates unusual transactions totaling $11.2 million through a modified SafeMoon deployer contract. This activity coincides with the project’s bankruptcy proceedings, raising questions about its implications.

Details of the Transactions: According to a post by Cyvers Alerts, the entity altered SafeMoon’s deployer contract, allowing for the withdrawal of significant liquidity from multiple pools. Presently, the entity holds over $1.6 million in various tokens, with the remainder of the extracted liquidity transferred to Ethereum, BNB Chain, and Polygon.

Suspicious Movements: The suspicious activities commenced after the entity whitelisted an external address for withdrawal, leading to concerns about the legitimacy of these transfers. However, it remains unclear whether these transactions are connected to SafeMoon’s ongoing bankruptcy case, as the project has not issued any public statements on the matter.

Market Response and SafeMoon’s Status: Following the news, SafeMoon’s SFM token experienced a sharp decline of over 8% according to CoinMarketCap. SafeMoon initiated bankruptcy proceedings in mid-December 2023 after facing accusations from the U.S. Securities and Exchange Commission (SEC) for securities law violations. The SEC alleged that SafeMoon’s key executives conducted a fraudulent scheme, manipulating the project’s market capitalization through deceptive practices.

Legal Actions and Remaining Uncertainties: While SafeMoon’s CEO and CTO have been arrested, the founder remains at large. The bankruptcy filing and ongoing legal proceedings cast a shadow of uncertainty over the project’s future, with investors and observers closely monitoring developments amidst the liquidity drain incident.

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