Cryptocurrency company SafeMoon files for bankruptcy, executives face criminal charges

ChainCatcher news, cryptocurrency company SafeMoon filed for bankruptcy on Thursday, with its executives facing criminal charges in the U.S. SafeMoon stated that it has 50 to 99 creditors, assets between $10 million and $50 million, and debts ranging from $100,000 to $500,000. Unlike other cryptocurrency companies that filed for Chapter 11 bankruptcy, Chapter 7 bankruptcy typically does not have the intention of restructuring and restarting the company. SafeMoon's executives were arrested last month by U.S. officials on charges of conspiracy to commit securities fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering, but founder Kyle Nagy has been charged but has not yet been arrested. The company is also facing a lawsuit from the Securities and Exchange Commission, alleging fraud and violations of securities laws. SafeMoon's SFM has plummeted 42% in the past 24 hours, despite its low liquidity and relatively small market capitalization.