SafeMoon's token value dropped sharply by 31% in five hours following the company's Chapter 7 bankruptcy filing.
The decentralised finance protocol applied for liquidation bankruptcy with the U.S. Bankruptcy Court in Utah, impacting its financial obligations.
An alleged letter to SafeMoon employees surfaced, indicating the company's inability to pay wages and advising them to file claims in bankruptcy court.
This downturn comes after November's SEC charges against SafeMoon and its executives for alleged securities law violations.
The bankruptcy has led to frustration among SafeMoon supporters, with some alleging they were misled by the developers' promises.