Recently, on December 14, 2023, Safemoon US, LLC, the entity behind the safemoon.com website, filed for bankruptcy under Chapter 7 in Utah. According to the law, this action signifies that Safemoon will cease all operations, and the court will appoint a trustee to oversee the sale of the company’s assets to pay off creditors. The bankruptcy filing revealed that Safemoon possesses assets ranging from $10 to $50 million, with debts ranging from $100,000 to $500,000.
Safemoon’s bankruptcy comes on the heels of the company’s founders facing allegations of securities fraud, wire fraud, and money laundering by the U.S. Securities and Exchange Commission (SEC) and the Eastern District of New York Department of Justice (DOJ) the previous month. The DOJ accused the founders of misappropriating investor funds on luxury car purchases, real estate, and other extravagant assets.
Following Safemoon’s bankruptcy announcement, as often seen with similar projects, the value of the SFM token (Safemoon V2 version) plummeted to record lows. SFM’s price to drop to as low as $0.00002818. The price remained at this low level for a brief period before experiencing a significant rebound.
Some X users noted that platforms like Safemoon Wallet temporarily halted SFM token trading. Trading through Safemoon Swap was also temporarily suspended after the bankruptcy announcement.
As of the time of writing, SFM’s current price has been recovering to levels reminiscent of its previous highs before the Safemoon bankruptcy news spread. The price of SFM today is trading at $0.00005972, marking a nearly 100% increase in the past 24 hours and seemingly showing no signs of stopping.
This upward price movement is believed to be driven by the Safemoon Army, who are working to revive the project after this setback. However, the official Safemoon project’s X page has not provided any updates from the development team. Therefore, it is not ruled out that the price surge following Safemoon’s bankruptcy announcement is merely a price manipulation tactic by whales before witnessing the project’s complete collapse. Investing in SFM tokens at this time may be a risky decision.
Founded on March 1, 2021, by John Karony with the support of Kyle Nagy and Thomas Smith, Safemoon introduced its SFM token to the market in late December 2021. Prior to Safemoon’s bankruptcy, the SFM token reached its all-time high on January 5, 2022, at $0.00338272. Currently, the value of this token has lost 98.7% of its all-time high value from nearly two years ago.