SafeMoon, one of the most prominent decentralized finance (DeFi) companies, filed for bankruptcy after it was accused of fraud by the SEC and its executives were arrested.
The U.S. Securities and Exchange Commission (SEC) accused SafeMoon and its management team, particularly Kyle Nagy, John Karony, and Thomas Smith, of misusing investor funds for personal use. As a result of these allegations, managers were arrested and the company lost its reputation.
You can follow us on Google News to be instantly informed about our content! “The defendants allegedly lied to token investors about $SFM’s ‘locked’ liquidity being inaccessible to them, and also provided misleading information about their own SFM holdings and trading.
Following this incident, SafeMoon filed for bankruptcy protection. The declaration, filed in the U.S. Bankruptcy Court for the District of Utah on Thursday, was signed by Kenneth Ehrler, the company’s chief restructuring officer. SafeMoon Filing for Chapter 7 bankruptcy means liquidating the company’s assets and paying off its debts. This means the company goes bankrupt and sells its assets to pay off its debts.
