SafeMoon drops nearly 100% amidst fraud allegations

**Title: SafeMoon Executives Charged with Fraud as Token Plummets**

The cryptocurrency community is abuzz with discussion about SafeMoon [SFM] and the challenges it is currently facing. Amongst these issues, the token itself has been hit the hardest, experiencing a drastic decline in value. Let’s dive into the recent events surrounding SafeMoon.

**1. SEC Files Charges Against SafeMoon and Executives**
The Securities and Exchange Commission (SEC) made a significant announcement on November 1, revealing that they had filed fraud charges against SafeMoon and its top executives. The allegations include deceiving the public by falsely claiming that funds were locked during the token’s launch and engaging in wash trading to manipulate trading activity. Additionally, the executives were accused of misappropriating funds and spending them extravagantly. This revelation caused SafeMoon’s market capitalization to plummet from over $5.7 billion.

**2. The Impact on SafeMoon’s Price**
Prior to these charges, SafeMoon had been on a positive price run. However, on November 1, the token’s value experienced a significant drop of 53.71%. This downward trend continued in the following days with declines of 28.98% and 21.03%. As of now, SafeMoon is still on a downward trajectory, with a loss of over 2% in value. The Relative Strength Index (RSI) indicates a strong bearish trend, suggesting that the token is in the oversold zone.

**3. Funds Held by Hackers**
SafeMoon had previously fallen victim to an exploit in March, resulting in a net loss of $8.9 million. This exploit involved the transfer of 32 billion SFM tokens to the hacker’s address from SafeMoon’s liquidity pool address. The hacker took advantage of the surge in the token’s value by swapping a portion of the SFM tokens for Binance Coin [BNB]. Unfortunately, 27,380 BNB remains in the hacker’s address and has not been recovered at this time.

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In conclusion, SafeMoon’s recent troubles, including fraud charges leveled against its executives and significant declines in token value, have raised concerns about the coin’s future. It remains to be seen how these events will impact SafeMoon and whether the token can recover from these challenges.

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By Team