SafeMoon falls 31% in five hours after filing for Chapter 7 bankruptcy
The Safemoon token nosedived following the firm filing for bankruptcy protection, but has regained slightly since.
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 allegedly 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.
