According to a report from Golden Finance, encrypted company SafeMoon has officially filed for Chapter 7 bankruptcy. Previously, the SEC accused SafeMoon and its executive team of fraud and unregistered issuance of cryptocurrency securities in November.

SafeMoon posted on X platform, stating that they are reviewing recent news and will make every effort to resolve the issue as soon as possible as they receive more information. In addition, SafeMoon stated that the team will continue to build and provide services to users. Earlier, the SEC charged SafeMoon and its executives with fraud and unregistered securities issuance, and two SafeMoon executives were arrested on suspicion of fraud and money laundering.

Decentralized finance (DeFi) protocol SafeMoon has responded to the recent lawsuit by the US Securities and Exchange Commission (SEC) and expressed its intention to seek a solution. The project posted on X platform that they are reviewing the recent news and take these issues very seriously. They will do their best to resolve the problem as soon as they receive more information. Meanwhile, their team continues to build, focus on providing services to users, building their vision, and advancing their mission. Jinse Finance reported that SEC accused SafeMoon executives of fraud and offering unregistered securities.

SafeMoon and its executive team have been charged by the SEC for conducting a fraudulent scheme through an unregistered securities sale. The SEC's complaint alleges that the executive team withdrew over $200 million from the project and used investors' funds for personal gain. The agency accused SafeMoon creator Kyle Nagy, CEO John Karony, and CTO Thomas Smith of fraud. The SEC also stated that SafeMoon's liquidity pool was not properly locked, and the team used funds to purchase luxury items and manipulate the market.