SafeMoon, a once-popular digital currency project, has officially filed for Chapter 7 bankruptcy. The move, announced on Dec. 14, marks a pivotal moment for the company and its stakeholders. Documents filed in the Utah Bankruptcy Court in the United States show that the company has decided to liquidate the company’s assets. Unfortunately, it paints a bleak picture for SafeMoon’s future.
Filing details
Attorney Mark Ross has filed a voluntary bankruptcy petition. This legal action follows a series of troubling events at SafeMoon that culminated in this decisive step. Going into liquidation means that the company cannot continue to operate or pay its debts.
A revealing document posted on Reddit revealed the dire situation facing the company's employees. The letter informed employees that they would need to file a claim in bankruptcy court to receive their unpaid wages. This development is particularly frustrating considering that many employees were already experiencing financial stress due to delayed salary payments.
A month before filing for bankruptcy, SafeMoon had been in trouble with the U.S. Securities and Exchange Commission (SEC). The company was charged with securities violations along with key figures such as founder Kyle Nagy, CEO John Karony, and CTO Thomas Smith. The SEC called the situation a "massive fraud scheme" that cast a shadow over SafeMoon's operations.
The Collapse of the SafeMoon (SFM) Token
The impact of these legal and financial issues was evident in the market performance of SafeMoon’s token, SFM. Following these developments, the value of SFM plummeted, something many had feared since the project’s launch. This downturn not only affected investors, but also shook the wider cryptocurrency community’s confidence in similar projects.
The bankruptcy news triggered a wave of frustration and disappointment among former SafeMoon supporters. Many took to platforms such as Reddit to voice their dissatisfaction. They accused the developers of performing a "rug-pull," a term used in the crypto world to describe deceptive behavior by project developers. These allegations, while unproven, reflect the deep sense of betrayal felt by many in the community.
Insider Views and Past Issues
Reflecting on the current situation, Santiago Melgarejo, a former sales specialist at SafeMoon, pointed out warning signs. He stressed that the sudden dismissal of numerous employees, despite their dedicated and unpaid work, was a red flag. In addition, the project suffered a major financial exploitation in 2023, raising suspicions of insider involvement, although concrete evidence has yet to surface. #SafeMoon #破产
