On December 14, SafeMoon’s attorney, Mark Rose, filed for bankruptcy for the DeFi project. The SFM token reacted sharply with a significant drop.
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 screenshot of a letter, supposedly from the director of restructuring, was posted by a Reddit user. According to the communication to the team, SafeMoon’s management was unable to pay employee salaries before filing for bankruptcy.
In March, an unknown individual compromised the liquidity pool of SafeMoon on the BNB Chain, withdrawing assets amounting to approximately $9 million. PeckShield experts speculated that the hacker exploited a bug that emerged as a result of a previous code update in the burning function.
Later, the perpetrator agreed to return 80% of the withdrawn funds in exchange for halting any legal pursuit.
It’s worth noting that 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, authorities suspended the bail release process for the project’s CEO, John Karony, due to concerns about flight risk and “danger to the community.” The U.S. Securities and Exchange Commission (SEC) also raised allegations against the project’s leadership.
