SafeMoon US, LLC, by filing for bankruptcy in the Utah District Court, has signaled the end of a process fraught with uncertainties. This development follows legal challenges and significant market fluctuations that have plagued the company.
SafeMoon’s own token, SFM, experienced a sharp 14% drop within the first 24 hours following the bankruptcy announcement, trading at all-time low levels.
The company’s financial difficulties are evident in the bankruptcy filing, which includes debts ranging between $100,001 and $500,000 and estimated assets between $10,000,001 and $50 million. These figures highlight the dire scenario resulting from SafeMoon’s poor management and legal proceedings.
Last month, the U.S. government charged SafeMoon executives Braden John Karony, Kyle Nagy, and Thomas Smith with securities fraud and money laundering offenses.
It was noted that Karony engaged in fraud involving millions of dollars for personal gain, posing a significant flight and danger risk to the community. Karony’s international mobility and access to global crypto assets raised concerns about the potential for evading justice.