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SafeMoon Entities (tokens holders)

Class Action
  • Active
Investigation
08/27/2021
Initial Lawsuit
03/07/2022
Lawsuit Progression
06/07/2022

Investigation

This is an investors investigation into SafeMoon Tokens, following due diligence reports, audit reports, tax issues related to its V2, alleged undisclosed promotional campaigns and a large crypto price decline following April 18, 2022 one-year investigative findings by a Youtuber.

Please refer to the factual timeline below. Investors are invited to participate to the timeline, add events and share this post.

A lawsuit was subsequently filed, we will update this post as it unfolds.

  • Investigation Date
    08/27/2021
  • Hypothetical Affected Period
    March 8, 2021 to March 7, 2022
  • Hypothetical Transgression
    Securities Violation
Main Event

DoxxLocker Report

08/27/2021

Research Report (No position)

DoxxLocker publishes a due diligence report containing analysis of SafeMoon’s white paper with a brief synopsis, a complete transaction summary of the automatic liquidity wallets (the protocol deployer and the contract owner), and a few transaction chains to show that “a large portion of … funds were washed through multiple wallets and sold off-chain.” The report finds that transactions scrutinized “clearly show[] a deep flaw in the automatic liquidity system built into the contract that allows the developers to withdraw the generated liquidity into other wallets” (as highlighted by a report from the security auditor CertiK).

“The wallets the transactions were tracked through contained millions of dollars in sales and transfers, and have no official tie to the project, nor have a recognized, transparent purpose.
So long as the automatic liquidity process goes through wallets controlled by the developers, and there are outstanding tokens still held in these wallets, there is potential risk of the developers continuing to pull funds directly from the project.“

See more on Factual Timeline

Initial Lawsuit

First Complaint - 03/07/2022

An investor filed a class-action lawsuit on behalf of all investors who purchased SafeMoon tokens* between March 8, 2021 and the time of filing the complaint on March 7, 2022, and were damaged thereby.

*The complaint defines the SafeMoon Tokens as “blockchain-based digital assets known as BEP-20 tokens that are created using the Binance Smart chain mainnet blockchain.”

  • Filing Date
    03/07/2022
  • Class Period
    03/08/2021 to 03/07/2022
  • Transgression
    Securities Violation
  • Filing Firms
    Scott+Scott Attorneys at Law LLP
  • Case Title
    Blacksher v. SafeMoon LLC et al
  • Docket Number
    2:22-cv-01527
  • Court
    California Central District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) the company’s executives, collaborating with several celebrity promotors made false or misleading statements to investors about SafeMoon through social media advertisements and other promotional activities, and disguised their control over SafeMoon and a significant percent of the SafeMoon Tokens that were available for public trading during the class period (float);
(ii) in furtherance of this scheme, defendants touted the technological innovation of the company’s token and related cryptocurrency wallet, as well as the ability for investors to make significant returns due to the favorable “tokenomics” of the SafeMoon Tokens;
(iii) in truth, defendants marketed the SafeMoon Tokens to investors so that they could sell their portion of the float for a profit.

Defendants

  • Company
    SafeMoon LLC
  • Company
    SafeMoon US, LLC
  • Company
    SafeMoon Connect, LLC
  • Company
    Tano LLC
  • Company
    SafeMoon LTD
  • Company
    SafeMoon Protocol LTD
  • Company
    SafeMoon Media Group LTD
  • Chief Executive Officer
    Braden John Karony
  • Chief (Other)
    Jack Haines-Davies
  • Other
    Ryan Arriaga
  • Authorized Representative
    Shaun Witriol
  • Chief Technology Officer
    Henry “Hank” Wyatt
  • Founder
    Kyle Nagy
  • Chief (Other)
    Thomas Smith
  • Other
    Jake Paul
  • Other
    Nick Carter
  • Other
    DeAndre “Soulja Boy” Cortez Way
  • Other
    Ben Phillips
  • Other
    Miles “Lil Yachty” Parks McCollum
  • Other
    Daniel M. Keem

Lawsuit progression

  • Docket Number
    2:22-cv-01527
  • Court
    California Central District Court

Lead Counsel

06/07/2022

The court issued an order appointing the lead plaintiff and lead counsel.

Factual Timeline

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