SafeMoon Files for Bankruptcy Amid SEC Fraud Charges

The DeFi protocol's token, SFM, has plummeted in value as the company faces allegations of fraudulent practices and misuse of investor funds.

SafeMoon, a DeFi protocol, has filed for Chapter 7 bankruptcy protection following fraud allegations by the U.S. Securities and Exchange Commission (SEC).
The SEC's charges against SafeMoon and its executive team include fraud and the unregistered offering of crypto securities.
SafeMoon's executives, Kyle Nagy, John Karony, and Thomas Smith, are accused of engaging in deceptive practices and misusing investor funds for personal gain.
SafeMoon's market position has been severely affected, with its token, SFM, experiencing a significant drop in value.
The bankruptcy filing is part of a broader crackdown by the SEC on the crypto industry, with major players like Binance also being targeted.