- SafeMoon has filed for bankruptcy, marking a fitting end to the coin symbolic of the 2021 bull run
- The company’s top execs have been charged with fraud by the SEC
- The SFM token’s value plummeted by 42% as a result
The party’s over: SafeMoon, whose founders were recently accused of fraud by the US Securities and Exchange Commission (SEC), has filed for bankruptcy. The filing, signed by Chief Restructuring Officer Kenneth Ehrler, brings to an untimely yet fitting end the coin that was emblematic of the 2021 bull run, with its move to Chapter 7 bankruptcy carried out in order to protect its remaining assets. The value of the SFM token has crashed 42% as a result, with even its most dogged supporters finally realizing that the moon is most certainly out of reach for a second time.
At Least $10 Million in Assets
The bankruptcy filing, made yesterday in Utah, disclosed assets estimated between $10 million to $50 million, with liabilities ranging from $100,001 to $500,000. Most of these assets will likely end up in the pockets of lawyers and the SEC, however, after the agency sued the company and its executives, Kyle Nagy, John Karony, and Thomas Smith, citing fraud and an unregistered offering of crypto securities. Karony and Smith have been arrested, while Nagy remains at large.
Prosecutors assert that the executives deceived SafeMoon investors about the accessibility of ‘locked’ liquidity and misappropriated millions for personal gain as SafeMoon’s market capitalization soared past $8 billion.
The Dream Comes to an End
Safemoon was one of the poster-children of the 2021 bull run, enjoying four-digit growth and attracting over one million holders after launching in March of that year. As with all shitcoins, however, promises of a platform to change the face of finance were pie in the sky, and holders are left with memories of what was, what was never going to be, and useless bags of SFM tokens cluttering up their wallets.
