The decentralised finance protocol SafeMoon (SFM) has filed for Chapter 7 bankruptcy for liquidation.

SEC and DoJ became the cause of SafeMoon's bankruptcy

     In its anti-crypto campaign, the SEC and DoJ filed charges against SafeMoon founder Kyle Nagy, CEO John Karony, and CTO Thomas Smith in November for violating securities laws, causing SafeMoon's market to collapse. Now Safemoon is unable to even pay salaries to its employees.

Chapter 7 bankruptcy

     Chapter 7 is a liquidation type of bankruptcy, it is not like Chapter 11. A voluntary petition has been filed by attorney Mark Rose in the District of Utah Bankruptcy Court. SafeMoon employees are also informed that they need to file a claim in bankruptcy court to recover their unpaid wages.

Safemoon token destroyed

     Safemoon's native token was like a memecoin in the crypto world until last year. However, this bankruptcy announcement of Safemoon has created such a stir that the Safemoon token recorded a sharp decline and its value became minimal; now its market is over.