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HomeCrypto MiningSafeMoon SFM token drops 6% following $11 million liquidity drain

SafeMoon SFM token drops 6% following $11 million liquidity drain

Greater than $11 million value of digital property have been eliminated as liquidity from varied swimming pools of the controversial crypto challenge SafeMoon, in accordance with blockchain safety agency Cyvers Alert.

Following the information, SafeMoon’s SFM token fell 6% to $0.00003134 as of press time, in accordance with CryptoSlate’s knowledge.

Liquidity eliminated

In a Feb. 12 submit on social media platform X (previously Twitter), Cyvers Alert acknowledged that it detected an uncommon transaction linked to Safemoon. The transaction concerned the motion of liquidity from varied swimming pools, facilitated by a newly established handle labeled as an “approveLiquidityPartner.”

This handle executed roughly $11.2 million in transfers, encompassing property from a number of blockchain networks, together with Ethereum, Binance Sensible Chain, and Polygon. Notable property concerned in these transfers embrace USDC, USDT, Shiba Inu, LINK, Wrapped BTC, and Pepe, as evidenced by on-chain knowledge.

The handle holds $1.6 million in digital property, together with Wrapped BTC, USDT, Pepe, Chainlink, and others.

Cyvers Alert questioned the potential connections between these transactions and SafeMoon’s ongoing chapter proceedings.

Chapter replace

Final 12 months, SafeMoon filed for chapter safety within the US Chapter Court docket in Utah. The submitting revealed that the corporate’s liabilities could possibly be value as a lot as $500,000, whereas its property have been valued at greater than $10 million.

Earlier this 12 months, the corporate stated it will decommission its SafeMoon Pockets at an undisclosed date.

“With the intention to insure you’ll nonetheless have the ability to entry any wallets that you’ve got loaded within the software, please safe your Restoration Phrases and/or Personal Keys as quickly as doable,” it added.

Safemoon confronted a sequence of controversies main as much as its chapter submitting, considerably contributing to a decline in its market worth. In March 2023, the challenge encountered a $9 million exploit, ensuing within the depletion of its liquidity pool.

Moreover, in November 2023, the US Securities and Trade Fee (SEC) levied allegations of fund misappropriation in opposition to senior Safemoon executives, accusing them of diverting over $200 million for private use. Subsequently, CEO John Karony and Chief Expertise Officer Thomas Smith have been arrested for these allegations.



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