SafeMoon, a DeFi protocol, yesterday filed for Chapter 7 bankruptcy protection after being charged with alleged fraud by the US securities watchdog last month.
The voluntary bankruptcy petition was filed in the United States Bankruptcy Court in the District of Utah and was signed by SafeMoon’s chief restructuring officer Kenneth Ehrler.
According to the filing, the firm, SafeMoon US LLC, has estimated assets between $10 million and $50 million and estimated liabilities between $100,001 and $500,000.
This development follows the charges brought against SafeMoon and its executive team by the Securities and Exchange Commission last month.
The agency accused the firm’s three executives, Kyle Nagy, John Karony, and Thomas Smith, of fraud and offering unregistered crypto securities. The SEC alleged that the executives failed to deliver promised profits and used investor funds for personal gain.
