DeFi protocol SafeMoon filed for Chapter 7 bankruptcy protection on Thursday, following the U.S. securities watchdog last month. charged Company accused of fraud.
Safemoon contaminated A voluntary bankruptcy petition was filed Thursday in U.S. Bankruptcy Court for the District of Utah. The document was signed by Chief Restructuring Officer Kenneth Ehrler.
SafeMoon US LLC has estimated assets in the range of $10 million to $50 million and liabilities in the range of $100,001 to $500,000, according to the filing.
The news comes after the Securities and Exchange Commission filed charges against the company and its executives last month. Allegations of fraud and unregistered offering of cryptocurrency securities. The agency said three SafeMoon executives — Kyle Nagy, John Karony and Thomas Smith — failed to deliver promised profits and misappropriated investor funds for personal use.
Karony and Smith be arrested Last month, Nagy stayed put. “Defendants lied to SFM investors about SFM’s personal holdings and transactions and whether the use of SFM’s ‘locked’ liquidity was inaccessible to defendants,” prosecutors said. said. “As SFM’s market capitalization grew to more than $8 billion, defendants fraudulently misappropriated and misappropriated millions of dollars worth of SFM’s purportedly ‘locked’ liquidity for their personal gain.”
The SafeMoon token fell 14.4% in the past 24 hours as of midday Friday in Asia. data From CoinGecko.
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