Thread by @SystemsTng

A quick thread on the Liquidity pool Movements and how #safemoon exploits their army to enrich themselves. /1

The V1 liquidity pool from Pancake swap is locked, which means Safemoon LLC cannot perform a “RemoveLiquidity” function to take the BNB or V1 tokens out. /2

However, it still functions as a LP - if you put V1 in you take BNB out. If you put BNB in you get V1 out. However, there’s a 100% tax so anything you do is taxed and those funds don’t disappear, they’re sent to a liquidity pool that ISNT locked. /3

That 100% tax? Nearly $5m were confiscated from people trying to Move, Buy, Sell or Swap Safemoon. They’re still being taxed today, and that’s a whole other story. Here’s my post on it:

reddit.com/r/CryptoCurren…

/4

So we know Safemoon is in receipt of $5m of assets they confiscated (and that @CptHodl has allegedly promised back), and that they can and have withdraw liquidity from this pool:

bscscan.com/token/0x9adc6f…

Look at the amount of liquidity withdrawn AFTER Dec 29 (100% tax date) /5

So how to get at the locked LP with those millions of BNB? Sell V1 tokens! How to sell with a 100% tax?? Whitelist your own wallets!!

#Safemoon LLC whitelisted their own wallets and used seized V1 tokens to buy BNB that was supposed to be locked. /6

Now they have a shitload of BNB. John could have very easily performed an “AddLiquidity” function to just move the BNB into the V2 liquidity pool which was getting desperately low. But that’s not the #Safemoon way. Why do something for holders when you can enrich yourself?! /7

So @CptHodl and #safemoon team BUY V2 tokens with V1 liquidity that didn’t belong to them. That way, it adds BNB to V2 liquidity and pumps the price which excites investors.

BUT!…

/8

They’re buying V2 tokens instead of just putting BNB in, and so are getting millions of dollars BACK, instead of just transferring from A to B. The sales are also incurring the tax, giving them 1% on either side of “legitimate” funds. AND!… /9

Crucially, they’re taking OUT V2 tokens from the LP pool, so the balance of total V2 liquidity didn’t really change that much! @CptHodl was right. He was playing 4D chess, because the #safemoonarmy championed this as a genius move, when in reality John pocketed your money. /10

When asked what he plans to do with these tokens, @CptHodl replied that burning them is a waste, and then he gave several vague scenarios. He doesn’t have a clue, and I doubt he expected people to notice what he did. /11

That money came from somewhere John, it came from #Safemoonarmy investors who had $5m worth of their tokens unfairly taken from them, while most of the army laughed at them. Over 52,000 #safemoon holders had their tokens confiscated and the CEO pockets the cash. /12

Crypto is the Wild West, but #Safemoon is a registered entity in the US and the UK. There are now 3 class action lawsuits against Karony and co. Fraud is fraud, theft is theft. Crypto or not. And these guys were dumb enough to steal money on a publicly viewable ledger. /13