The Safemoon dive continues, following the arrest of its leaders. The company just filed for bankruptcy, which further accelerated SFM’s price downward. What will happen to the company?
Safemoon filed for bankruptcy
End of story for Safemoon? An American company that has faced many legal problems, He filed for bankruptcy yesterday. It has been placed under ‘Chapter 7’, which means it has been put in charge of managers who will support the bankruptcy process, with funds being recovered to pay off creditors. This is currently happening on FTX for example.
According to registered documents, Safemoon’s creditors are between 50 and 99, and the company still has Assets 10 to 50 million dollars. She would owe between $100,000 and $500,000.
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In response to this news, the price of SFM fell again. Lost -35% in less than a day., reaching a price of $0.000049. Its capitalization now stands at just $17 million, while at the height of its success it exceeded $1 billion.
The price of SFM has fallen further since yesterday
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Safemoon, success and flash crash
Safemoon is one of those crypto companies that saw considerable success when they launched, only to flop. Its history is full of controversy : since its first year, celebrities have been sued for promoting it.
👉 Read about this – Several celebrities including Jake Paul sued for promoting SafeMoon (SFM)
Safemoon then experienced a $9 million hack last March, but the scandal was overshadowed by another, much bigger one. Its leaders were actually arrested last month. They are accused took about $200 million from the projectin order to finance their luxurious lifestyles.
So the challenge for the company’s managers will be to get the funds back and pay off Safemoon’s debts. As for former leaders, they face several decades in prison. So the Safemoon saga is not quite over and the upcoming trial should be watched closely.
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Source: United States Bankruptcy Court
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A journalist at Cryptoast, I have been immersed in cryptocurrencies since 2017. I am passionate about the issues of decentralization, privacy and the global impact of these new technologies.
Marine Debelloir
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