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Top Decentralized Finance (DeFi) protocol <a href="https://thecoinrise.com/safemoon-protocol-loses-almost-9-million-to-hacker/" rel="noopener noreferrer nofollow">Safemoon</a> filed for Chapter 7 bankruptcy protection with the United States Bankruptcy Court in the District of Utah. 
The <a href="https://www.courtlistener.com/docket/68089978/1/safemoon-us-llc/" rel="noopener noreferrer nofollow">filed document was signed by Kenneth Ehrler,</a> SafeMoon’s Chief Restructuring Officer. Markedly, this follows an earlier enforcement action from the U.S Securities and Exchange Commission (SEC).&nbsp;&nbsp;
According to the latest filing, SafeMoon US LLC estimated assets in between $10 million to $50 million while its estimated liabilities have a range of $100,001 to $500,000.
<h2 id="b-sec-sues-safemoon-executives-for-misconduct-b">SEC Sues SafeMoon Executives For Misconduct&nbsp;</h2>
In November, <a href="https://thecoinrise.com/safemoon-and-its-executives-charged-for-several-fraudulent-schemes/" rel="noopener noreferrer nofollow">SEC charged the BNB Chain-based exchange, and its executives</a>, Kyle Nagy, SafeMoon’s creator, John Karony, its Chief Executive Officer (CEO), and Chief Technology Officer (CTO) Thomas Smith for their involvement in certain misconduct. All defendants in the lawsuit were accused of orchestrating an extensive fraudulent scheme through the unregistered sale of SafeMoon, a crypto asset security.&nbsp;
The regulator argued that the exchange contributed to a substantial loss in the broad crypto market capitalization after promising investors to propel the token’s price “safely to the moon.” These executives withdrew about $200 million which they redirected onto their personal use including the purchase of cars and real estate properties.&nbsp;
<h2 id="b-safemoon-executives-orchestrates-fraudulent-scheme-b-span-style-font-weight-400-span">SafeMoon Executives Orchestrates Fraudulent Scheme&nbsp;</h2>
Per a statement from the prosecution team, “As alleged, the defendants lied to SFM investors concerning whether SFM’s use of ‘locked’ liquidity was inaccessible to the defendants, as well as their personal holding and trading of SFM.”&nbsp;
“As SFM’s market capitalization grew to more than $8 billion, the defendants fraudulently diverted and misappropriated millions of dollars’ worth of purportedly ‘locked’ SFM liquidity for their personal benefit,” the prosecutors added.
So far, two of the executives Smith and Karony were arrested while Nagy remains at large.
<h2 id="b-safemoon-token-nosedive-by-31-b">SafeMoon Token Nosedive by 31%</h2>
The news about the Chapter 7 bankruptcy filing has triggered a price drop in the SafeMoon token. Within the last 24 hours, more than 31% value loss has been recorded on SafeMoon.&nbsp; At the time of this writing, data from CoinGecko confirmed that <a href="https://coinmarketcap.com/currencies/safemoon/" rel="noopener noreferrer nofollow">the token was trading at $0.00003266</a>, showing that it has recovered slightly.&nbsp;
Overall, the token has plunged by 98% from its highest price of $0.0033 on Jan. 5, 2022, and its market cap which was previously around $1 billion has now tumbled to $34.5 million.
The post <a href="https://thecoinrise.com/safemoon-files-for-chapter-7-bankruptcy/" rel="noopener noreferrer nofollow">SafeMoon Files For Chapter 7 Bankruptcy</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

SafeMoon Files For Chapter 7 Bankruptcy

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