The SafeMoon token nosedived as it was revealed the company behind it had filed for bankruptcy, but it has regained slightly since.
The token of decentralized finance protocol SafeMoon has fallen 31% in five hours after the company behind it 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 for the District of Utah. The voluntary petition was filed by attorney Mark Rose, with Judge Joel Marker assigned to the case.
A screenshot of a letter to employees purportedly written by the firm’s chief restructuring officer surfaced on Reddit, explaining that its bankruptcy run was why it could no longer pay employee wages before the filing.