The token of decentralized finance protocol SafeMoon has fallen 31% in 5 hours after the corporate behind it filed for chapter.
SafeMoon formally utilized for Chapter 7 chapter, often known as “liquidation chapter,” in a Dec. 14 submitting to america Chapter Court docket for the District of Utah. The voluntary petition was filed by lawyer Mark Rose, with Choose Joel Marker assigned to the case.
A screenshot of a letter to workers purportedly written by the agency’s chief restructuring officer surfaced on Reddit, explaining that its chapter run was why it may not pay worker wages earlier than the submitting.
“You’ll need to file a declare within the chapter courtroom in your unpaid wages,” the doc learn.
The newest blow comes solely a month after the U.S. Securities and Trade Fee charged SafeMoon, its founder Kyle Nagy, its CEO John Karony, and its chief know-how officer Thomas Smith, with violating securities legal guidelines in what the regulator described as “an enormous fraudulent scheme.”
The SafeMoon (SFM) token fell from $0.000065 on Dec. 14 at 8:24 pm UTC to $0.000045 in a five-hour interval after the information, in keeping with CoinGecko. Nonetheless, it rebounded again to $0.000061 in a rapid-fire 10-minute span.
SFM is presently altering palms for $0.00005729. The token is down 98.2% from its highest worth of $0.0033 on Jan. 5, 2022, and its as soon as $1 billion market cap has now tumbled to $34.5 million.
A number of former SafeMoon supporters expressed frustration on Reddit relating to the chapter, alleging they had been rug-pulled by the SafeMoon builders.
“The very fact of the matter is, everybody has been scammed by the SafeMoon builders, together with the mods that supported and trusted SafeMoon,” stated Reddit consumer u/Jtenka.
One other Reddit consumer, u/anonyamon42069, stated: “By no means wanna even speak about how dangerous all of us bought scammed and particularly the cash I misplaced. To the idiots that also assume SafeMoon has an opportunity and can ‘go to the moon’: search assist.”
Associated: SafeMoon hacker’s use of centralized exchanges may assist regulation enforcement — Match Methods
Santiago Melgarejo, a former nonfungible token analyst and gross sales specialist for SafeMoon, stated in reflection that the “warning indicators had been there” all alongside, notably when lots of the workers had been abruptly fired regardless of a lot of them working a month with out pay.
Lately realized about SafeMoon’s chapter submitting, and my ideas are with my ex-colleagues who’ve been unpaid for a month, and the holders going through frustration and anger.
Reflecting again, the warning indicators had been there – notably, when many people had been abruptly fired over a number of…
— Santi (@Santi_NFT) December 14, 2023
SafeMoon was additionally exploited in March, leading to a internet lack of $8.9 million.
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