SafeMoon Files for Chapter 7 Bankruptcy in Utah

According to Blockworks, SafeMoon filed for Chapter 7 bankruptcy in Utah on Thursday. The filing indicates that the company is focusing on liquidation to distribute assets to creditors. SafeMoon stated in the filing that it has property requiring attention, including cryptocurrency, intellectual property, and other intangible assets. These assets are estimated to be worth $10 to $50 million, with liabilities ranging from $100,000 to $500,000. The filing lists approximately 50 to 99 creditors. The bankruptcy filing comes just over a month after the US Securities and Exchange Commission (SEC) filed a lawsuit against SafeMoon and some of its top executives. The SEC accused SafeMoon, creator Kyle Nagy, CEO John Karony, and Chief Technology Officer Thomas Smith of perpetrating a massive fraudulent scheme. The US Department of Justice arrested Karony and Smith, while Nagy remains at large. Both the SEC and DOJ claim that the executives misled investors and used funds to purchase luxury vehicles and real estate. SafeMoon's token (SFM) has experienced a significant decline, with CoinGecko data showing a 36% drop in the past 24 hours and a 98% decrease from its all-time high.