His plea was made on February 20, 2025, at a Brooklyn federal court, where he changed his previous not guilty plea to guilty for securities fraud conspiracy and wire fraud conspiracy.

Smith admitted to misleading investors about SafeMoon's liquidity, which could lead to a prison sentence of up to 45 years.

In the wake of Smith's guilty plea, SafeMoon is pivoting to a community-controlled, Solana-based memecoin strategy as part of its revival efforts.

Thomas Smith, the chief technology officer of SafeMoon LLC, has pleaded guilty to charges related to a $200 million crypto fraud scheme, marking a significant turn in his legal battle.

The charges against Smith and SafeMoon's CEO Braden John Karony stem from a 2023 investigation by the Justice Department and the Securities and Exchange Commission, which accused them of fraud and money laundering.

The SEC claimed that the SafeMoon team misled investors by falsely marketing the project as a secure investment with a locked liquidity pool, while they had unrestricted access to these funds.

While Smith has admitted his guilt, Karony continues to deny the charges and is scheduled for trial on April 7, 2025, despite attempts to dismiss his case.

Kyle Nagy, the project creator, remains at large, reportedly in Russia, while Smith and Karony were arrested shortly after the indictment.

At its peak, SafeMoon's market cap was between $5.7 billion and $8 billion, but it plummeted nearly 50% following revelations about the liquidity pool in April 2021.

Prosecutors allege that Smith and Karony diverted funds for personal use, financing luxury cars and real estate, while manipulating trading to create a false demand.

SafeMoon filed for bankruptcy in December 2023 amid ongoing legal troubles and the arrests of its executives, including Smith and Karony.

On February 14, 2025, SafeMoon's new team announced a shift towards a community-driven project, emphasizing engagement without a predefined utility.