SafeMoon plunges 31% in five hours after filing for Chapter 7 bankruptcy.

Decentralized financial protocol token SafeMoon (SFM) plunged 31% in five hours after the company filed for bankruptcy.

Safemoon officially filed for Chapter 7 bankruptcy protection in a Dec. 14 filing in the U.S. Bankruptcy Court in the District of Utah. The voluntary petition was filed by attorney Mark Rose with Chief Judge Joel T. Marker assigned to the case. Bankruptcy filing today in the United States Bankruptcy Court in the District of Utah. Source: US Government

A screenshot of a letter to employees, purportedly written by the company's head of restructuring, has appeared on Reddit, explaining that its run-up to bankruptcy was the reason it was no longer able to pay employees' salaries before the declaration.

“You will need to file a claim in bankruptcy court for your unpaid wages,” the document reads.

The latest blow comes just a month after the US securities regulator charged SafeMoon, its founder Kyle Nagy, CEO John Karony and CTO Thomas Smith in November with violating securities laws in that which the regulator described as “a massive fraudulent scheme”.

According to CoinGecko, the cryptocurrency fell from $0.000065 on December 14 at 20:24 UTC to $0.000045 in the span of five hours following the news. However, it bounced back to $0.000061 in a quick span of 10 minutes.

SFM has fallen 98.2% from its highest price of $0.0033 on January 5, 2022, and its market capitalization, once $1 billion, has now plummeted to $34.5 million. $BTC $ETH $BNB #finance #trading #money #eth #safemoon