SafeMoon Enters Bankruptcy Proceedings After Founder and Executives Face Fraud Indictment
Following the indictment of its founder and two executives on fraud charges in November, blockchain firm SafeMoon is taking the step to file for Chapter 7 bankruptcy.
The move comes over a month after founder Kyle Nagy, CTO Thomas Smith, and CEO Braden Karony were accused of violating securities laws. The charges include allegations of defrauding investors by falsely claiming the inaccessibility of assets in SafeMoon’s liquidity pools. While in reality, all three had the ability to withdraw funds. The Department of Justice claims the trio used $200 million of client funds for personal enrichment. Charged with wire fraud, money laundering, and securities fraud. The executives face legal action from both the DOJ and the SEC.
The bankruptcy news has impacted the price of SafeMoon’s native digital asset (SFM). Which currently trades at $0.000042, reflecting a 34.28% decrease in the last 24 hours.
Clever Robot News Desk 18th December 2023
