1 year ago
In the latest development, Safemoon, a crypto company, voluntarily initiated Chapter 7 bankruptcy proceedings successful the District of Utah, arsenic stated successful their bankruptcy documentation. This enactment comes connected the heels of the company’s founders facing indictment for securities fraud, ligament fraud, and wealth laundering by the U.S. Securities and Exchange Commission and Department of Justice past month.
Safemoon US Files Chapter 7; SFM Token Plummets
On December 14, 2023, Safemoon US, LLC, the entity down the safemoon.com website, lodged a Chapter 7 bankruptcy petition successful Utah. This benignant of bankruptcy, often referred to arsenic “liquidation,” necessitates selling the debtor’s nonexempt assets to settee debts with creditors.
For a concern specified arsenic Safemoon, Chapter 7 bankruptcy signifies halting each operations, portion a court-appointed trustee manages the merchantability of the company’s assets to repay creditors. The bankruptcy submission, authorized by the main restructuring officer, reveals that Safemoon possesses assets valued betwixt $10 and $50 million, against liabilities ranging from $100K to $500K.
Founded connected March 1, 2021, by CEO John Karony, with assistance from Kyle Nagy and Thomas Smith, Safemoon introduced its autochthonal token safemoon (SFM) to the marketplace astatine the extremity of December 2021. On January 5, 2022, SFM deed its highest worth astatine $0.00338272. Currently, the token’s worth is down by 98.7% from its all-time high, astir 2 years prior.
However, past period brought turmoil arsenic the SEC and the Eastern District of New York Department of Justice (DOJ) charged Safemoon with fraud, alleging misappropriation of millions. The DOJ accused the founders of extravagantly spending capitalist funds connected high-end vehicles, existent estate, and different luxury purchases.
Following the bankruptcy declaration, SFM‘s worth plummeted to a grounds low, continuing its downward trajectory. In the Chapter 7 documentation, erstwhile asked whether the debtor owns oregon possesses immoderate spot requiring contiguous attention, the restructuring serviceman affirmed with a “yes.” The assets successful question, categorized arsenic “other,” are listed arsenic encompassing “cryptocurrency, intelligence property, and different intangible assets.”
What bash you deliberation astir Safemoon filing for bankruptcy amid the SEC and DOJ charges? Share your thoughts and opinions astir this taxable successful the comments conception below.
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