Crypto Company SafeMoon Takes A Bold Turn, Rocking The Market With 42% Plummet!
The firm’s leadership is facing legal action, with arrests made last month on various charges.
SafeMoon, a crypto company, filed for Chapter 7 bankruptcy amid its executives facing U.S. criminal charges.
Associated with a token of the same name, SafeMoon disclosed 50 to 99 creditors, assets ranging from $10 million to $50 million, and debts between $100,000 and $500,000 in a filing at the Utah Bankruptcy Court.
Chapter 7 bankruptcy involves liquidating a debtor’s assets to repay creditors. Unlike Chapter 11 filings by other crypto firms aiming to restructure, Chapter 7 typically lacks plans for company relaunches.
Last month, U.S. officials arrested SafeMoon’s executives, alleging securities fraud conspiracy, wire fraud conspiracy, and money laundering conspiracy. CEO John Karony, CTO Thomas Smith, and creator Kyle Nagy are accused of mishandling investor funds and misleading customers. Nagy faces charges but remains unarrested.
The company is also confronting an SEC lawsuit, accused of fraud and violating securities laws.
SafeMoon’s SFM token suffered a brutal 42% decline over the past 24 hours, further highlighting its already limited liquidity and market capitalization.
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* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.
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