SafeMoon’s SFM Token Plummets 50% After Bankruptcy Filing
The price of SafeMoon’s SFM token has dropped by 50% following the Chapter 7 bankruptcy filing by SafeMoon US, LLC. SFM is currently trading at $0.00003270, marking an all-time low for the cryptocurrency.
Bankruptcy Filing Details
SafeMoon US, LLC filed for Chapter 7 bankruptcy in the United States Bankruptcy Court for the District of Utah. The filing reveals that the company has between 50 and 99 creditors, with estimated assets ranging from $10,000,001 to $50 million and liabilities ranging from $100,001 to $500,000.
Unpaid Wages Claim
A letter allegedly written by the firm’s chief restructuring officer surfaced on the r/safemoon subreddit. The letter indicated that employees would need to file a claim in the bankruptcy case to recover unpaid wages.
Legal Troubles
In addition to the bankruptcy filing, SafeMoon executives Braden John Karony, Kyle Nagy, and Thomas Smith were charged by the U.S. Department of Justice with securities fraud, wire fraud conspiracy, and money laundering. The U.S. Securities and Exchange Commission (SEC) also filed civil charges against SafeMoon and its executives for engaging in an unregistered sale of crypto securities as part of a fraudulent scheme.
Hot Take: SafeMoon’s Downfall Highlights Risks in Crypto Investments
The recent crash of SafeMoon’s SFM token and the subsequent bankruptcy filing serve as a stark reminder of the risks associated with investing in cryptocurrencies. With regulatory scrutiny increasing and fraudulent activities becoming more prevalent in the crypto space, it is crucial for investors to exercise caution and conduct thorough due diligence before entering the market. While the potential for high returns exists, so does the potential for significant losses. As the industry continues to evolve, it is important to stay informed and make well-informed investment decisions.
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