SafeMoon Was Never Safe, Declares Bankruptcy
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December 15, 2023 11:31 am
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SafeMoon has officially declared Chapter 7 bankruptcy in the state of Utah.
According to the official filing from Thursday, the now-defunct crypto project is currently focused on liquidating its cryptocurrencies and other ‘intangible’ assets to repay creditors.
ProCoin News previously reported that the SafeMoon founders had been arrested by U.S. authorities due to ongoing litigation from the SEC, IRS, and the DOJ.
The SafeMoon founders were charged with allegedly operating a multi-million dollar digital fraud scheme.
Indeed, the project has been wrought with allegations of fraud and malfeasance from concerned investors and regulatory officials for years now. Here’s the latest:
🚨 Breaking News: SafeMoon Files for Chapter 7 Bankruptcy#SafeMoon, entangled in legal troubles with executives facing criminal charges and an #SEC #lawsuit, has taken a significant step by filing for bankruptcy. This move marks a challenging period for the #crypto company. ⚖️ pic.twitter.com/jsYDY8KF6E
— Paweł Łaskarzewski (@PawelSynapse) December 15, 2023
SafeMoon Files for Bankruptcy, SFM Token Crashes 50% to All-Time Low
► https://t.co/AYV1TJkycW https://t.co/AYV1TJkycW— Decrypt (@decryptmedia) December 15, 2023
Blockworks provided more details on the bankruptcy filing:
The assets are expected to be worth $10 to $50 million, with anywhere from $100,000 to $500,000 in estimated liabilities. It listed roughly 50 to 99 creditors in the filing.
Crypto Potato reminded readers of these facts and presented some of the latest headlines regarding SafeMoon:
“SafeMoon declared Chapter 7 bankruptcy amidst exec arrests & SEC charges! Filed in Utah court following SEC’s fraud allegations & unregistered crypto offering. Execs accused of misappropriating funds, as $SFM token value drops over 40% in the last 24h.”
🚨SafeMoon declared Chapter 7 bankruptcy amidst exec arrests & #SEC charges!
• Filed in Utah court following SEC's fraud allegations & unregistered #crypto offering
• Execs accused of misappropriating funds, as $SFM token value drops over 40% in the last 24h, as per @coingecko pic.twitter.com/yEG90V6OBA— CryptoPotato Official (@Crypto_Potato) December 15, 2023
SafeMoon has lost roughly 50% or more of its value since November, but remained relatively stable until recently.
The New York Post claimed:
“As alleged, the defendants deliberately misled investors and diverted millions of dollars to fuel their greedy scheme and enrich themselves by purchasing a custom Porsche sports car, other luxury vehicles and real estate,” US Attorney Breon Peace said.
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