Safemoon Files for Bankruptcy
SafeMoon files for bankruptcy amid fraud charges, executives arrested, causing a 14.4% drop in their token's value.
A popular DeFi protocol, SafeMoon has declared bankruptcy after they were charged with fraud by the U.S. Securities and Exchange Commission. They filed for Chapter 7 bankruptcy, which means they want to stop their services and sell their assets to clear debts.
The company owes about $500,000 and owns assets that are worth between $10 million and $50 million.
Kyle Nagy, John Karony, and Thomas Smith, who are executives of Safemoon, were also charged for not delivering profits to investors. According to the charges, they promised investors profits and used investors' money for themselves. Karony and Smith were arrested, while Nagy was still free. Prosecutors claim they lied to the investor about the security of their funds and took millions for personal use.
SafeMoon's token dropped by 14.4% in one day, after their announcement.
