SafeMoon's SFM Token Drops 10% After CEO's Conviction

SafeMoon's native token, SFM, experienced a significant drop of over 10% within a 24-hour period following the conviction of its former CEO, Braden Karony. The US federal jury found Karony guilty on all three charges: money laundering, wire fraud, and securities fraud. This verdict has had a profound impact on the cryptocurrency market, particularly for SafeMoon holders.

The trial, which lasted 12 days, concluded with Karony facing up to a 45-year jail term. The prosecutor's allegations highlighted that Karony and his co-conspirators misled investors about their access to the liquidity pool, using the assets for personal gains. The misappropriation of investor funds led to the firm filing for bankruptcy in December 2023. The court ordered the surrender of one residential home and the sale proceeds from another, worth around $2 million, as part of the judgment.

The conviction of Karony represents a pivotal moment for the SafeMoon project, which has been marred by fraud allegations. The project, which once had a market capitalization of over $8 billion, has seen its reputation tarnished by these controversies. The guilty verdict has further eroded investor confidence in SafeMoon's future, adding to the turbulence the project has faced since its remarkable performance in 2021.

SFM's price outlook remains bearish amidst these legal developments. The token decoupled from the broader market rallies, experiencing a 10% dip in the past 24 hours. Technical indicators, such as the MACD and Relative Strength Index, support this bearish trajectory, suggesting further declines before the alt hits the oversold territory. SafeMoon's future remains uncertain, with the organization yet to comment on the guilty conviction. Enthusiasts and investors will be closely watching how the team plans to rescue the project and regain investor trust.