- SafeMoon’s top executives have been accused of fraud.
- The token has fallen almost 100% in less than a week.
There is still discussion about SafeMoon [SFM] and the various problems it seems to be facing. Amid all this, the token seems to have been hit the hardest.
Read SafeMoon’s [SFM] Price forecast 2023-24
SEC sues SafeMoon and executives
On November 1, the Securities and Exchange Commission (SEC) made a decision announcementwhich revealed that it had filed fraud charges against SafeMoon and its top executives.
The SEC’s allegations include misleading the public by falsely claiming that funds were frozen during the token’s launch. They also accused the executives of engaging in wash trading to create a false impression of trading activity.
In addition, the executives were accused of embezzling funds and spending excessively.
As a result of the revelation that the funds were not locked, the token’s market cap plummeted from more than $5.7 billion. The official project account recognized these recent developments in a post.
How SAFE is the MOON?
If there was any hope that SafeMoon would recover, recent developments could potentially be the final blow. AMBCrypto’s analysis of the daily timeframe chart showed that the token had experienced a positive price increase.
However, this upward movement came to an abrupt end on November 1.
On that day, the chart reflected a significant 53.71% drop in the token’s value. The following days brought no relief, with declines of 28.98% and 21.03% on the following days.
Source: TradingView
Moreover, at the time of writing, SFM was still on a downward trajectory, with a loss of value of over 2%. Moreover, continued selling pressure has pushed the Relative Strength Index (RSI) below 25.
This indicated that the token was in the oversold zone and indicated a strong bearish trend.
How much are 1,10,100 SFMs worth today?
Hackers continue to hold onto money
SafeMoon initially suffered an exploit in March, resulting in a significant net loss of $8.9 million. The exploit involved the transfer of 32 billion SFM tokens from SafeMoon’s liquidity pool address to SafeMoon’s deployment address.
This led to an immediate increase in the value of the token, and the exploiter benefited from this price increase. This was done by exchanging some of the SFM tokens for Binance Coin [BNB] at an inflated price.
Ultimately, 27,380 BNBs were transferred to the hacker’s address. At the time of writing, these funds have not yet been successfully recovered.