Decentralized finance (DeFi) protocol SafeMoon (SFM) filed for bankruptcy after bad days.
DeFi protocol SafeMoon, whose senior executives were arrested for fraud at the beginning of November filing for bankruptcy found. SafeMoon filed for bankruptcy in the U.S. Bankruptcy Court for the District of Utah on Thursday, December 14. chapter 7 petition presented.
The filing reveals the estimated assets of SafeMoon US LLC. $10 million with 50 million dollars and the estimated debts are between $100,001 to $500,000 It was stated that it was among.
The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against SafeMoon and its executives in November. unregistered securities salesi and fraud He filed a lawsuit for his reasons. SEC, two of the company’s three directors John Karony And thomas smithHe arrested , Kyle Nagy He released him. It was stated that the arrested duo spent customer funds for their personal interests.
Prosecutors handling the case said SafeMoon executives clearly deceived its investors And that they abused their authority stated:
As alleged, the defendants lied to investors about whether SFM’s use of ‘locked’ liquidity was inaccessible to them, as well as about their stakes and trades in SFM. As SFM’s market capitalization climbed to over $8 billion, the defendants fraudulently misappropriated millions of dollars worth of allegedly ‘locked up’ SFM liquidity for their personal benefit.
SafeMoon’s market capitalization at its peak, $1 billion It was around. According to current data $17 million market capitalization of SFM in the last 24 hours according to CoinGecko. from 55% losing too much value $0.0000642 from level to $0.0000287 declined. SFM, at the time of writing From $0.0000338 is being traded.