SafeMoon falls 31% in five hours after filing for Chapter 7 bankruptcy
The token of decentralized finance protocol SafeMoon (SFM) has fallen 31% in five hours after the company filed for bankruptcy.
Safemoon officially applied for Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” in a Dec. 14 filing to the United States Bankruptcy Court in the District of Utah. The voluntary petition was filed by attorney Mark Rose, with Chief Judge Joel T. Marker assigned to the case.
A screenshot of a letter to employees purportedly written by the firm’s chief restructuring officer surfaced on Reddit, explaining that its bankruptcy run was why it was no longer able to pay employee wages prior to the filing.
“You will need to file a claim in the bankruptcy court for your unpaid wages,” the document read.
The latest blow comes only a month after the United States securities regulator charged SafeMoon, its founder Kyle Nagy, CEO John Karony, and CTO Thomas Smith in November for violating securities laws in what the regulator described as “a massive fraudulent scheme.”
The cryptocurrency fell from $0.000065 on Dec. 14 at 8:24pm UTC to $0.000045 over a five-hour period after the news, according to CoinGecko. It did, however rebounded back to $0.000061 in a rapid-fire 10 minute span.
SMF fell 31% immediately following the bankruptcy filing before regaining slightly. SFM is currently changing hands for $0.00005729. The token is down 98.2% from its highest price of $0.0033 on Jan. 5, 2022, and its once $1 billion market cap has now tumbled to $34.5 million.
Several former SafeMoon supporters expressed frustration on Reddit in reflection of the bankruptcy, alleging they were rug-pulled by the SafeMoon developers.
“The fact of the matter is, everyone has been scammed by the SafeMoon developers, including the mods that supported and trusted SafeMoon,” said Reddit user Jtenka.
Another Reddit user, “anonyamon42069,” said: “Never wanna even talk about how bad we all got scammed and especially the money I lost. To the idiots that still think SafeMoon has a chance and will ‘go to the moon’: seek help.”
Related: SafeMoon hacker’s use of centralized exchanges could help law enforcement — Match Systems
Santiago Melgarejo, a former nonfungible token analyst and sales specialist for SafeMoon, said in reflection that the “warning signs were there” all along, notably when many of the employees were abruptly fired despite many of them working a month without pay.
Recently learned about SafeMoon’s bankruptcy filing, and my thoughts are with my ex-colleagues who’ve been unpaid for a month, and the holders facing frustration and anger.
Reflecting back, the warning signs were there – notably, when many of us were abruptly fired over several…
— Santi (@Santi_NFT) December 14, 2023
SafeMoon was also exploited in March, resulting in a net loss of $8.9 million.
Magazine: Huawei NFTs, Toyota’s hackathon, North Korea vs. Blockchain: Asia Express
Politics
MP Zarah Sultana who was ousted from Labour announces she is starting new political party with Jeremy Corbyn
An MP who was ousted from the Labour Party has announced she is setting up a new political party with Jeremy Corbyn.
Independent MP Zarah Sultana said she and the former Labour leader will co-lead the new party, which she did not provide a name for.
She said other independent MPs, campaigners and activists from across the country will join them, but did not name anyone.
Politics latest: Zarah Sultana’s stinging resignation letter
Ms Sultana also said she was “resigning” from the Labour Party after 14 years.
She was suspended as a Labour MP shortly after they came to power last summer for voting against the government maintaining the two-child benefit cap.
Several others from the left of the party, including Mr Corbyn, were also suspended for voting against the government, and also remained as independent MPs.
However, Ms Sultana was still a member of the Labour Party – until now.
Mr Corbyn has previously said the independent MPs who were suspended from Labour would “come together” to provide an “alternative.
The other four are: Iqbal Mohamed, Shockat Adam, Ayoub Khan and Adnan Hussain.
Mr Corbyn and the other four independents have not said if they are part of the new party Ms Sultana announced.
In her announcement, Ms Sultana said she would vote to abolish the two-child benefit cap again and also voted against scrapping the winter fuel payment for most pensioners.
Ms Sultana also voted against the government’s welfare bill this week, which was heavily watered down as Sir Keir Starmer tried to prevent a major rebellion from his own MPs.
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Protesters block Israeli arms manufacturer in Bristol
On Wednesday, Ms Sultana spoke passionately against Palestine Action being proscribed as a terror organisation – but MPs eventually voted for it to be.
She said to proscribe it is “a deliberate distortion of the law to chill dissent, criminalise solidarity and suppress the truth”.
Ms Sultana said they were founding the new party because “Westminster is broken but the real crisis is deeper – just 50 families now own more wealth than half the UK population”.
She called Reform leader Nigel Farage “a billionaire-backed grifter” leading the polls “because Labour has completely failed to improve people’s lives.
Ms Sultana called Nigel Farage a ‘billionaire-backed grifter’. Pic: PA
The MP, who has spoken passionately about Gaza, added: “Across the political establishment, from Farage to Starmer, they smear people of conscience trying to stop a genocide in Gaza as terrorists.
“But the truth is clear: this government is an active participant in genocide. And the British people oppose it.
“We are not going to take this anymore.”
A Labour Party spokesperson said: “In just 12 months, this Labour government has boosted wages, delivered an extra four million NHS appointments, opened 750 free breakfast clubs, secured three trade deals and four interest rate cuts lowering mortgage payments for millions.
“Only Labour can deliver the change needed to renew Britain.”
Roman Storm is scheduled to appear in a New York courtroom for his criminal trial on July 14, facing money laundering and conspiracy charges.
The Wyoming Senator seeks to end double taxation and add clarity to the tax treatment of crypto staking, mining, and lending transactions.
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