Crypto firm SafeMoon US LLC filed for bankruptcy in a Utah court on Thursday, a month after its executives were accused by federal prosecutors of using millions of dollars of investor funds to buy luxury homes and sports cars.
The Chapter 7 filing — a process which means the firm intends to liquidate its assets and shut down operations — said SafeMoon had between $10 million and $50 million in estimated assets. Its liabilities were estimated at a maximum of $500,000, with up to 99 estimated creditors.
The US Department of Justice and Securities and Exchange Commission sued the three founders of SafeMoon in November, alleging that they defrauded investors in its crypto token which uses the same name. The SafeMoon token, which trades under the ticker SFM and was touted <-bsp-bb-link state=”{“bbDocId”:”RFXICXT0AFB4″,”_id”:”0000018c-7d31-db9e-abee-fd3dd4c40000″,”_type”:”0000016b-944a-dc2b-ab6b-d57ba1cc0000″}”>by celebrities-bsp-bb-link>, fell 42% following the news, according to pricing data by CoinGecko.
It’s lost nearly 99% of its value from its all-time high in January 2022. The token benefited from the crypto frenzy a year earlier, when the coin <-bsp-bb-link state=”{“bbDocId”:”QS6KSVT0G1KX”,”_id”:”0000018c-7d31-db9e-abee-fd3dd4c40002″,”_type”:”0000016b-944a-dc2b-ab6b-d57ba1cc0000″}”>once jumped-bsp-bb-link> a staggering 19,000%.
Read more: <-bsp-bb-link state=”{“bbDocId”:”S3GFDQT0AFB5″,”_id”:”0000018c-7d31-db9e-abee-fd3dd4c50001″,”_type”:”0000016b-944a-dc2b-ab6b-d57ba1cc0000″}”>SafeMoon Execs Bought Cars With Investor Cash, US Claims (1)-bsp-bb-link>
SafeMoon didn’t immediately respond to a request for comment.
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<-bsp-person state=”{“_id”:”0000018c-7d31-db9e-abee-fd3dd4c70000″,”_type”:”00000160-6f41-dae1-adf0-6ff519590003″}”>Emily Nicolle-bsp-person> in London at enicolle@bloomberg.net
To contact the editors responsible for this story:
<-bsp-person state=”{“_id”:”0000018c-7d31-db9e-abee-fd3dd4ca0000″,”_type”:”00000160-6f41-dae1-adf0-6ff519590003″}”>stacy-marie ishmael-bsp-person> at sishmael@bloomberg.net
Emily Nicolle, Anna Irrera
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