DeFi Project SafeMoon Files for Bankruptcy
Main page News, DeFi
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Dec. 15, 2023

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.

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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.

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Last month, the SEC charged SafeMoon, its founder Kyle Nagy, CEO John Karony and CTO Thomas Smith with violating securities laws.

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