1 year ago
Decentralized concern (DeFi) task Safemoon’s SFM crashed to an all-time debased aft the steadfast down it filed for bankruptcy connected Dec . 14.
Attorney Mark Rose filed for a Chapter 7 bankruptcy connected behalf of SafeMoon astatine the United States Bankruptcy Court for the District of Utah. The filing indicates that the steadfast has 50-99 creditors and assets betwixt $10,000,001 and $50 million. SafeMoon has an estimated liabilities betwixt $100,001 and $500,000.
Chapter 7 bankruptcy, besides called “straight” oregon “liquidation” bankruptcy, permits the merchantability of a company’s assets to settee debts owed to creditors.
Simultaneously, a circulating missive purportedly from the firm’s main restructuring serviceman connected societal media level X (formerly Twitter) suggests that employees of the bankrupt institution volition request to record claims for their unpaid wages successful the bankruptcy case.
Following the news, SFM’s worth plunged to $0.00002875 but has somewhat rebounded to $0.00003 arsenic of property time, according to CryptoSlate’s data.
SafeMoon struggles
SafeMoon is simply a DeFi-oriented task that aims to supply investors with opportunities to gain involvement connected their investments done L.P. acquisition and token burns.
However, the task has faced persistent controversy, resulting successful a important diminution successful the worth of its SFM token aft peaking successful March 2022.
Thus, this caller improvement adds to a drawstring of adverse events linked to the project.
For context, the U.S. Securities and Exchange Commission (SEC) filed ineligible charges against SafeMoon and cardinal enactment members successful November. The regulator alleged they wiped retired billions successful marketplace capitalization, withdrew crypto assets worthy much than $200 cardinal from the project, and misappropriated capitalist funds for idiosyncratic use.
Subsequently, CEO John Karony and Chief Technology Officer Thomas Smith were apprehended by the U.S. Department of Justice for defrauding customers of millions of dollars.
Before these incidents, SafeMoon’s liquidity excavation experienced an exploit, resulting successful astir $9 cardinal successful BNB losses successful March. Additionally, YouTuber Coffeezilla released aggregate videos successful the past twelvemonth alleging wide misconduct and fraud involving the project’s leadership.
The station SafeMoon hits grounds debased arsenic institution files for Chapter 7 bankruptcy appeared archetypal connected CryptoSlate.
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