SafeMoon Plunges as Crypto Firm Files for Chapter 7 Bankruptcy

Crypto firm SafeMoon has filed for Chapter 7 bankruptcy, with its executives facing criminal charges in the U.S. The company has between 50 and 99 creditors, assets between $10 million and $50 million, and owes between $100,000 and $500,000. Unlike Chapter 11 bankruptcies, there is no intent to restructure and relaunch the company. SafeMoon's executives were arrested on charges of securities fraud conspiracy, wire fraud conspiracy, and money laundering conspiracy. The firm is also facing a lawsuit from the Securities and Exchange Commission (SEC) alleging fraud and securities law violations. SafeMoon's token, SFM, plunged 42% in the past 24 hours.