SafeMoon US, LLC has filed for bankruptcy in the US Bankruptcy Court for the District of Utah, indicating the end of a process filled with uncertainties. The company announced this development following a period of struggling with legal challenges and significant market fluctuations.
SafeMoon’s native token, SFM, experienced a dramatic 14% drop in value within the first 24 hours following the bankruptcy announcement, trading at its lowest levels of all time.
The financial difficulties faced by the company were revealed in the bankruptcy filing, which showed liabilities ranging between $100,001 and $500,000 and estimated assets between $10,000,001 and $50 million. These figures point to a dire scenario resulting from poor management and legal proceedings specific to SafeMoon.
Last month, the US government charged SafeMoon executives Braden John Karony, Kyle Nagy, and Thomas Smith with securities fraud and money laundering offenses.
Court records indicate that Karony is facing allegations of embezzling millions of dollars for personal gain and has the potential to evade justice due to his international mobility and access to global crypto assets. Karony’s actions and the resulting loss of over $300 million for investors have cast a shadow over the operations of SafeMoon.