Decentralized finance (DeFi) protocol SafeMoon has filed for Chapter 7 bankruptcy following the arrest of its executives and criminal charges in the United States. The filing has resulted in a significant drop in the price of SFM, the native token of the network.
According to the bankruptcy filing, SafeMoon has less than 100 creditors and holds assets between $10 million and $50 million, with debts ranging from $100,000 to $500,000. The US Department of Justice (DOJ) has charged SafeMoon executives with fraud, including conspiracy to commit securities fraud, wire fraud, and money laundering conspiracy.
Following the bankruptcy filing, the company has allegedly not been paying its staff, and a letter from the chief restructuring officer advises employees to file a claim in the bankruptcy court for their unpaid wages and retain any company property to be turned over to the trustee.
The price of SFM has experienced a significant decline, with a 50% drop in the past 24 hours and an 80% drop since the DOJ crackdown in November. The SFM token currently trades nearly 100% below its all-time high of $0.007232.
The Chapter 7 bankruptcy filing has led to allegations that SafeMoon was a rug pull project, causing frustration among investors and traders.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | very negative |
| Relevance Score | 1 |
| People | Thomas Smith, Kyle Nagy, Braden John Karony |
| Companies | bankruptcy court, Utah Bankruptcy Court, SafeMoon, US Department of Justice (DOJ) |
| Currencies | None |
| Securities | None |
