Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Crypto Firm SafeMoon Files for Chapter 7 Bankruptcy, SFM Plunges 42%

Crypto Firm SafeMoon Files for Chapter 7 Bankruptcy, SFM Plunges 42%

CoindeskCoindesk2023/12/15 08:04
By:Nikhilesh De

The firm's executives were arrested last month on multiple charges.

Crypto company SafeMoon filed for Chapter 7 bankruptcy on Thursday, as its executives face criminal charges in the U.S.

SafeMoon, which is affiliated with a token by the same name, said it has between 50 and 99 creditors, anywhere between $10 million and $50 million in assets, and owes between $100,000 and $500,000, according to a filing in the Utah Bankruptcy Court.

Chapter 7 bankruptcies result in a debtor’s assets being liquidated to repay creditors. Unlike the Chapter 11 bankruptcies other crypto companies have filed under, there’s usually no intent to restructure and relaunch the company.

SafeMoon’s executives were arrested last month by U.S. officials on charges of securities fraud conspiracy, wire fraud conspiracy and money laundering conspiracy tied to allegations that CEO John Karony, CTO Thomas Smith and creator Kyle Nagy misappropriated millions in investor assets and lied to customers. However, Nagy was charged but has not been arrested yet.

The firm also faces a Securities and Exchange Commission (SEC) lawsuit alleging fraud and securities law violations.

SafeMoon’s SFM tanked some 42% over the past 24 hours, though it also does not have a lot of liquidity or a particularly large market capitalization.

Edited by Parikshit Mishra.

95

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

6 Reasons XRP Price Could Hit $1 This Summer (Opinion)

Many are wondering if XRP can reach $1 anytime soon. Well, here are a few reasons in support.

Cryptopotato2024/07/21 16:55
6 Reasons XRP Price Could Hit $1 This Summer (Opinion)