The token of decentralized finance protocol SafeMoon (SFM) experienced a significant drop of 31% in just five hours following the company’s bankruptcy filing. SafeMoon filed for Chapter 7 bankruptcy protection, with the voluntary petition being submitted to the United States Bankruptcy Court in the District of Utah. The firm’s chief restructuring officer allegedly wrote a letter to employees explaining that the bankruptcy was the reason for the inability to pay wages prior to the filing.

This latest blow comes shortly after SafeMoon and its key executives were charged by the United States securities regulator for violating securities laws, which was described as a “massive fraudulent scheme.” The cryptocurrency’s value plummeted from $0.000065 to $0.000045 after the news, but it quickly rebounded to $0.000061 in a short span of time.

SafeMoon’s token has experienced a significant decline, currently down 98.2% from its highest price in January 2022. Its market cap has also dropped from $1 billion to $34.5 million. Former supporters of SafeMoon expressed frustration on Reddit, claiming they were deceived by the developers. Some users urged others to seek help and criticized those who still believed in the project.

Furthermore, it was revealed that SafeMoon had been exploited in March, resulting in a net loss of $8.9 million. The warning signs of the company’s troubles were evident, including the abrupt firing of employees who had worked for a month without pay.

Overall, the bankruptcy filing and subsequent decline in value have left employees unpaid and holders of the token feeling frustrated and angry.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	Global
Countries	🇺🇸
Sentiment	very negative
Relevance Score	1
People	John Karony, Mark Rose, Thomas Smith, Kyle Nagy, Joel T. Marker
Companies	SafeMoon, Securities and Exchange Commission (SEC), District of Utah, United States Bankruptcy Court, CoinGecko
Currencies	US Dollar, SafeMoon
Securities	None