SafeMoon's SFM Token Crashes Over 50% After Company Files for Bankruptcy

According to Decrypt, SafeMoon's SFM token has experienced a significant crash, dropping over 50% in value after the company behind the project filed for Chapter 7 bankruptcy. The cryptocurrency is currently trading at $0.00003270, marking an all-time low. SafeMoon US, LLC applied for bankruptcy in a December 14 filing to the United States Bankruptcy Court for the District of Utah, submitted by attorney Mark Rose. The filing reveals that the company has an estimated 50-99 creditors, assets between $10,000,001 and $50 million, and liabilities ranging from $100,001 to $500,000. A post in the r/safemoon subreddit allegedly displays a letter from the firm's chief restructuring officer, stating that employees must file a claim in the bankruptcy case for unpaid wages. This bankruptcy filing follows the U.S. Department of Justice's unsealing of an indictment last month, charging SafeMoon executives Braden John Karony, Kyle Nagy, and Thomas Smith with conspiracy to commit securities fraud, conspiracy to commit wire fraud, and money laundering. U.S. Attorney for the Eastern District of New York Breon Peace accused the trio of deliberately misleading investors and diverting millions of dollars for their scheme. Karony and Smith were arrested, while Nagy remains at large. Concurrently, the U.S. Securities and Exchange Commission (SEC) filed civil charges against SafeMoon and its executives for perpetrating a massive fraudulent scheme through an unregistered sale of crypto securities.