The token of decentralized finance protocol SafeMoon (SFM) has fallen 31% in 5 hours after the corporate filed for chapter.
Safemoon formally utilized for Chapter 7 chapter safety in a Dec. 14 filing to the US Chapter Court docket within the District of Utah, . The voluntary petition was filed by legal professional Mark Rose with Chief Decide Joel T. Marker assigned to the case.
A screenshot of a letter to staff allegedly written by the agency’s chief restructuring officer surfaced on Reddit, explaining that its chapter run was why it was not capable of pay worker wages previous to the submitting.
“You’ll need to file a declare within the chapter courtroom on your unpaid wages,” the doc learn.
The newest blow comes solely a month after the US securities regulator charged SafeMoon, its founder Kyle Nagy, CEO John Karony, and CTO Thomas Smith in November for violating securities laws in what the regulator described as “an enormous fraudulent scheme.”
The cryptocurrency fell from $0.000065 on Dec. 14 at 8:24pm UTC to $0.000045 over a five-hour interval after the information, according to CoinGecko. It did, nevertheless rebounded again to $0.000061 in a rapid-fire 10 minute span.
SFM is down 98.2% from its highest value of $0.0033 on Jan. 5, 2022, and its as soon as $1 billion market cap has now tumbled to $34.5 million.
A number of former SafeMoon supporters expressed frustration on Reddit in reflection of the chapter, alleging they had been rug-pulled by the SafeMoon builders.
“The very fact of the matter is, everybody has been scammed by the SafeMoon builders, together with the mods that supported and trusted SafeMoon,” said Reddit person Jtenka.
One other Redditor, “anonyamon42069,” said: “By no means wanna even speak about how unhealthy all of us bought scammed and particularly the cash I misplaced. To the idiots that also assume SafeMoon has an opportunity and can ‘go to the moon’: search assist.”
Santiago Melgarejo, a former nonfungible token analyst and gross sales specialist for SafeMoon, stated in reflection that the “warning indicators had been there” all alongside, notably when lots of the staff had been abruptly fired regardless of lots of them working a month with out pay.
Not too long ago discovered about SafeMoon’s chapter submitting, and my ideas are with my ex-colleagues who’ve been unpaid for a month, and the holders dealing with frustration and anger.
Reflecting again, the warning indicators had been there – notably, when many people had been abruptly fired over a number of…
— Santi (@Santi_NFT) December 14, 2023
SafeMoon was additionally exploited in March, leading to a internet lack of $8.9 million.