SafeMoon

<p>The post <a href="https://coinpedia.org/news/safemoon-files-for-chapter-7-bankruptcy-amid-allegations-of-fraud/">Safemoon Files For Chapter 7 Bankruptcy Amid Allegations of Fraud</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>SafeMoon has officially <a href="https://storage.courtlistener.com/recap/gov.uscourts.utb.461366/gov.uscourts.utb.461366.1.0.pdf">filed for Chapter 7 bankruptcy protection</a>. The move follows a wave of accusations surrounding fraud and mismanagement that have plagued the company since its inception. Attorney Mark Rose Files Safemoon’s Bankruptcy Petition, Chief Judge Joel T. Marker Assigned to Case</p> 
<h2 class="wp-block-heading" id="h-why-safemoon-filed-for-bankruptcy">Why Safemoon Filed For Bankruptcy?</h2> 
<p>The SEC alleges that SafeMoon executives deceived investors about the accessibility of SFM’s ‘locked’ liquidity, utilizing the funds for personal gain as SafeMoon’s market cap soared to $8 billion. </p> 
<p>The legal drama escalated with the arrests of Karony and Smith in Provo, Utah, and Bethlehem, New Hampshire, respectively, while Nagy remains elusive. U.S. Attorney Peace commended the SEC for collaboration and pledged to pursue justice in the digital asset space.</p> 
<p>In the wake of the SEC’s legal action, SafeMoon faced a seismic event, causing its market value to plummet dramatically. Consequently, the cryptocurrency officially filed for Chapter 7 bankruptcy on December 15, 2023. </p> 
<p>The Chief Restructuring Officer acknowledged these challenges <a href="https://twitter.com/Danology10/status/1735393007182950768/photo/1">in an email</a>, stating that they compelled the company to cease operations and seek Chapter 7 bankruptcy protection. A letter explained that the company couldn’t pay employee wages before filing for bankruptcy due to its financial difficulties.</p> 
<p>The filing was subsequently confirmed on the United States Bankruptcy Court District of Utah’s website.</p> 
<h2 class="wp-block-heading" id="h-impact-of-bankruptcy-on-sfm-price">Impact Of Bankruptcy on SFM Price </h2> 
<p>After the US DOJ and SEC revealed charges against the company and arrested key executives, SFM Price initially plummeted by almost 52% in a day. Now, its price, currently at $0.000061, shows a 17.79% decrease, adding to the ongoing downward trend observed over the past week from its previous value of $0.000080. This recent drop ranks as the second-largest single-day decline.</p> 
<h2 class="wp-block-heading" id="h-what-next-for-safemoon">What Next For Safemoon?</h2> 
<p>The bankruptcy filing is pending a hearing today in the United States Bankruptcy Court, District of Utah, in front of Chief Judge Joel T. Marker. The collaborative efforts of Homeland Security Investigations and IRS-CI, New York, have facilitated the detection of the white-collar crime committed by the once-reputed leaders. The lingering question persists: even after the ground-breaking FTX fraud case, why have securities and regulations not been improved?</p>

Safemoon Files For Chapter 7 Bankruptcy Amid Allegations of Fraud

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