DeFi meme coin SafeMoon’s SFM token fell 50% after the company behind the project filed for Chapter 7 bankruptcy.
SFM is currently trading at $0.00003270.It fell 49.6% in the past 24 hours and hit an all-time low for the cryptocurrency, according to CoinGecko data.
SafeMoon US, LLC, represented by Attorney Mark Rose, filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the District of Utah on December 14. The filing shows the company has about 50 to 99 creditors, with estimated assets ranging from $10 million to $50 million and estimated liabilities ranging from $100,000 to $500,000.
A post on the r/safemoon subreddit shows a letter from the company’s chief restructuring officer, stating that employees should file bankruptcy for unpaid wages.
The bankruptcy filing comes after the U.S. Department of Justice last month unsealed an indictment charging SafeMoon executives Braden John Karony, Kyle Nagy and Thomas Smith with securities fraud, wire fraud and money laundering conspiracy.
Breon Peace, U.S. Attorney for the Eastern District of New York, said in a release accompanying the charges that the three men “intentionally misled investors and misappropriated millions of dollars to further their greedy schemes.”
Karony and Smith were arrested and Nagy remains at large. At the same time, the U.S. Securities and Exchange Commission (SEC) filed civil charges against SafeMoon and its executives for “perpetrating a massive fraud scheme” through the sale of unregistered cryptocurrency securities.
