Now it is almost confirmed that the Safemoon crypto project team will liquidate all its assets. With this news, the trade price of SFM tokens crashed by 50% within 24 hours.
Safemoon is a popular crypto meme project which was launched in March 2021, amid the initial phase of the last Crypto bull rally. This crypto project grabbed a high level of popularity among social media platform users because of the involvement of several social media stars & celebrities.
This week the Crypto company SafeMoon filed for Chapter 7 bankruptcy in a US bankruptcy court, as its key executives are facing criminal charges in the U.S.
As per the bankruptcy filing, the company has between 50 and 99 creditors, anywhere between $10 million and $50 million in assets, and owes between $100,000 and $500,000.
In short, here the company is ready with its plan to liquidate its assets & further release to the creditors but it will be interesting to see the court ruling in favour of those people who lost their money in the Safemoon (SFM) token investment on behalf of the celebrities endorsement.
#SAFEMOON Bankruptcy
Missing docs – Failure to provide sufficient docs can potentially lead to a dismissal of the case.
Something simple and considered “standard” like providing proper documentation should be done properly right? And right the first time, correct? pic.twitter.com/8hSeYH8Yb5
— NIQ (@DecentraIized_) December 16, 2023
Here it is worth it to note that the company filed for bankruptcy under Chapter 7, not Chapter 11, unlike other crypto companies.
Under Chapter 11 bankruptcy, the company has the authority to restructure & restart the business but under Chapter 7 the company has no authority to again restart or reconstruct its business. So here we can conclude that Safemoon is going to disappear forever.
Last month Safemoon executives were arrested by the US authorities for the wire fraud conspiracy and money laundering conspiracy tied to allegations that CEO John Karony, CTO Thomas Smith and creator Kyle Nagy misused the investor’s money and also lied to the customers.
The first lawsuit against Safemoon came in late 2021, where a Safemoon token investor claimed that the majority of the promotors were paid by Safemoon firm and also the project team never delivered those development activities which were promised.
Another Lawsuit was filed by two Safemoon token investors in the middle of 2022. In this case, the plaintiffs also blamed similar allegations.
Amid this highly struggling phase, the trade price of the SFM token is crashing badly. Over the last 3 months, the trade price of this token crashed nearly 76%.
Read also: Top stablecoin issuer Tether welcomes the FBI and the Secret Service
Safemoon (SFM) crashes nearly 100%, as the company decides shutdown plan
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