{"id":26636,"date":"2023-12-15T02:37:00","date_gmt":"2023-12-15T02:37:00","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/safemoon-falls-31-in-five-hours-after-filing-for-chapter-7-bankruptcy\/"},"modified":"2023-12-15T02:37:02","modified_gmt":"2023-12-15T02:37:02","slug":"safemoon-falls-31-in-five-hours-after-filing-for-chapter-7-bankruptcy","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/safemoon-falls-31-in-five-hours-after-filing-for-chapter-7-bankruptcy\/","title":{"rendered":"SafeMoon falls 31% in five hours after filing for Chapter 7 bankruptcy"},"content":{"rendered":"
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The token of decentralized finance protocol SafeMoon (SFM) has fallen 31% in five hours after the company filed\u00a0for bankruptcy.<\/p>\n

Safemoon officially applied for Chapter 7 bankruptcy, also known as \u201cliquidation bankruptcy,” in a Dec. 14 filing to the United States Bankruptcy Court in the District of Utah. The voluntary petition was filed by attorney Mark Rose, with Chief Judge Joel T. Marker assigned to the case.<\/p>\n

Today\u2019s bankruptcy filings in the U.S. Bankruptcy Court District of Utah. Source: U.S. government<\/em><\/figcaption><\/figure>\n

A screenshot of a\u00a0letter to employees allegedly written by the firm\u2019s chief restructuring officer surfaced on Reddit, explaining that its bankruptcy run was why it was no longer able to pay employee wages prior to the filing.<\/p>\n

\u201cYou will need to file a claim in the bankruptcy court for your unpaid wages,\u201d the document read.<\/p>\n

The latest blow comes only a month after the United States securities regulator charged SafeMoon, its founder Kyle Nagy, CEO John Karony, and CTO Thomas Smith in November for violating securities laws in what the regulator described as \u201ca massive fraudulent scheme.\u201d<\/p>\n

The cryptocurrency fell from $0.000065 on Dec. 14 at 8:24pm UTC to $0.000045 over a five-hour period after the news, according to CoinGecko. It did, however rebounded back to $0.000061 in a rapid-fire 10 minute span.<\/p>\n

SMF fell 31% immediately following the bankruptcy filing before regaining slightly. SFM is currently changing hands for\u00a0$0.00005729.\u00a0The token is down 98.2% from its highest price of $0.0033 on Jan. 5, 2022, and its once $1 billion market cap has now tumbled to $34.5 million.<\/p>\n

SFM\u2019s change in price over the last 24 hours. Source: CoinGecko<\/em><\/figcaption><\/figure>\n

Several former SafeMoon supporters expressed frustration on Reddit in reflection of the bankruptcy, alleging they were rug-pulled by the SafeMoon developers.<\/p>\n

\u201cThe fact of the matter is, everyone has been scammed by the SafeMoon developers, including the mods that supported and trusted SafeMoon,\u201d said Reddit user Jtenka.<\/p>\n

Another Redditor, \u201canonyamon42069,\u201d said: \u201cNever wanna even talk about how bad we all got scammed and especially the money I lost. To the idiots that still think SafeMoon has a chance and will \u2018go to the moon\u2019: seek help.\u201d<\/p>\n

Related: <\/em><\/strong>SafeMoon hacker\u2019s use of centralized exchanges could help law enforcement \u2014 Match Systems<\/em><\/strong><\/p>\n

Santiago Melgarejo, a former nonfungible token analyst and sales specialist for SafeMoon, said in reflection that the \u201cwarning signs were there\u201d all along, notably when many of the employees were abruptly fired despite many of them working a month without pay.<\/p>\n

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Recently learned about SafeMoon’s bankruptcy filing, and my thoughts are with my ex-colleagues who’ve been unpaid for a month, and the holders facing frustration and anger.<\/p>\n

Reflecting back, the warning signs were there \u2013 notably, when many of us were abruptly fired over several\u2026<\/p>\n

\u2014 Santi (@Santi_NFT) December 14, 2023<\/a><\/p><\/blockquote>\n

SafeMoon was also exploited in March, resulting in a net loss of $8.9 million.<\/p>\n

Magazine:<\/em><\/strong> <\/em><\/strong>Huawei NFTs, Toyota\u2019s hackathon, North Korea vs. Blockchain: Asia Express<\/em><\/strong><\/p>\n<\/div>\n