On December 14th, SafeMoon’s attorney, Mark Rose, filed for bankruptcy for the DeFi project. The SFM token experienced a sharp decline in response.
Documents under Chapter 7 of the U.S. Bankruptcy Code were submitted to the Utah district court. SafeMoon US LLC estimated its assets in the range of $10 to $50 million, with liabilities ranging from $100,001 to $500,000.
A Reddit user posted a screenshot of a letter purportedly from the restructuring director. According to the message to the team, SafeMoon’s management failed to pay salaries to employees before filing for bankruptcy.
“You will need to file a lawsuit […] to recover unpaid wages,” the notification states.
In March, an unidentified individual compromised the liquidity pool of SafeMoon on the BNB Chain, withdrawing assets amounting to approximately $9 million. PeckShield experts speculated that the exploit used by the hacker may have stemmed from a previous code update related to the burning function.
Subsequently, the wrongdoer agreed to return 80% of the withdrawn funds in exchange for halting legal pursuit.
To recall, in November, the Eastern District of New York’s prosecutor’s office filed charges against the founders and leaders of SafeMoon for fraud involving “millions of dollars.”
During the same month, legal proceedings for the bail release of SafeMoon’s CEO, John Karony, were suspended due to concerns about flight risk and “danger to the community.” The U.S. Securities and Exchange Commission also raised allegations against the project’s leadership.
