Decentralized finance project (DeFi) SafeMoon filed for bankruptcy yesterday.
The Chapter 7 bankruptcy petition has reportedly been filed in Utah County Court. According to it, SafeMoon US LLC estimates its assets to be between $10 million and $50 million and its liabilities to be between $100,001 and $500,000.
Subscribe to our Telegram channel to get weekly short digests about events that shape the crypto world
A Reddit user has posted a screenshot of a letter purportedly from the chief restructuring officer. According to it, SafeMoon's management has been unable to pay employee salaries before filing for bankruptcy.
The notice states:
"You will need to file a claim in the bankruptcy court for your unpaid wages."
The project's native token, SFM, has suffered significant losses after the news broke.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange
Last month, the SEC charged SafeMoon, its founder Kyle Nagy, CEO John Karony and CTO Thomas Smith with violating securities laws.