š SafeMoon Plummets 31% in Hours After Chapter 7 Bankruptcy Filing
In a dramatic turn of events, the SafeMoon token experienced a sharp 31% decline within five hours of the company filing for Chapter 7 bankruptcy. While the token has seen a partial recovery, the fallout is significant.
š Bankruptcy Filing Details:
SafeMoon officially sought Chapter 7 bankruptcy, often termed as "liquidation bankruptcy," as confirmed in a December 14 filing to the United States Bankruptcy Court in the District of Utah. Attorney Mark Rose led the voluntary petition, with Chief Judge Joel T. Marker overseeing the case.
š¼ Financial Struggles Exposed:
A purported letter to employees circulated on Reddit, allegedly from the chief restructuring officer, cited the bankruptcy as the reason for the inability to meet payroll obligations. Employees were advised to file claims for unpaid wages in the bankruptcy court.
āļø Regulatory Challenges and Previous Setbacks:
This blow follows the recent charges by the U.S. securities regulator against SafeMoon, its founder Kyle Nagy, CEO John Karony, and CTO Thomas Smith for securities law violations, described as a "massive fraudulent scheme."
š Market Impact and Investor Sentiment:
The cryptocurrency tumbled from $0.000065 to $0.000045 after the bankruptcy news, per CoinGecko. Although it rebounded to $0.000061, the overall sentiment is somber. SafeMoon is currently valued at $0.00005729, down 98.2% from its peak in January 2022, with the market cap plummeting from $1 billion to $34.5 million.
š Community Reaction and Allegations:
Former SafeMoon supporters on Reddit voiced frustration and alleged rug-pulling by the developers. Some expressed feeling scammed and called out those still optimistic about SafeMoon's future, urging them to "seek help."
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