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Over $11 Million in Liquidity Drained From SafeMoon by Unknown Individual

An unknown individual drained over $11 million in liquidity from various pools associated with the controversial cryptocurrency project SafeMoon on Monday. The transaction triggered immediate speculation about a possible connection to SafeMoon’s ongoing bankruptcy proceedings.

Blockchain security company Cyvers Alert identified unusual activity surrounding SafeMoon, noting a recent address labeled “approveLiquidityPartner” that moved roughly $11.2 million.

NEWSOur system detected unusual transactions involving @safemoon.The deployer added an address as an approveLiquidityPartner at https://t.co/ayFhE3fAgN, which then removed liquidity from various pools, transferring $11.2M to https://t.co/thIHUqF3uW on $ETH, $BNB and… pic.twitter.com/iJofry10sj

— Cyvers Alerts (@CyversAlerts) February 12, 2024

Suspicious Transactions Amidst Bankruptcy

Assets involved spanned multiple blockchain networks (Ethereum, Binance Smart Chain, Polygon) and included USDC, USDT, Shiba Inu, LINK, Wrapped BTC, and Pepe.

According to Etherscan, the address now contains approximately $1.6 million in various cryptocurrencies, including Wrapped BTC, USDT, Pepe, Chainlink, and others.

Shortly after the news, SafeMoon’s SFM token fell to $0.00003226 as of press time, according to CoinMarketCap.

Cyvers Alert highlighted the timing of the liquidity drain, questioning any potential link to SafeMoon’s bankruptcy case.

“Notably, @safemoon announced bankruptcy for SafeMoon U.S. LLC on Jan’19 2024,” Cyvers Alert said. “Are these transactions linked to the bankruptcy case?”

SafeMoon Bankruptcy Case

In December 2023, SafeMoon sought bankruptcy protection in the US Bankruptcy Court in Utah, disclosing liabilities potentially reaching $500,000, while its assets were valued at over $10 million.

On January 19, the company announced the impending decommissioning of its SafeMoon Wallet, without specifying a date.

SafeMoon’s bankruptcy wasn’t without precedent. Several setbacks contributed to its financial issues, including a $9 million exploit in March 2023 that greatly depleted its liquidity pool. That same year, in November, the US Securities and Exchange Commission filed charges of fraud, unregistered securities offerings, and money laundering against SafeMoon and its executives. Serious allegations surfaced of top executives siphoning over $200 million for their private use, resulting in the arrest of CEO John Karony and Chief Technology Officer Thomas Smith.

The post Over $11 Million in Liquidity Drained From SafeMoon by Unknown Individual appeared first on Cryptonews.

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