Current discussions continue to revolve around SafeMoon (SFM), highlighting a number of challenges the token is currently grappling with.
On November 1, the Securities and Exchange Commission (SEC) made a public announcement revealing that it had filed fraud charges against SafeMoon and its top executives.
The SEC’s charges include misleading the public by falsely claiming funds were blocked during the token launch. They further allege that the executives engaged in “wash trading‘ to create a false impression of the commercial activity. Executive directors are also accused of misappropriating funds and spending them extravagantly.
After the revelation, that the funds weren’t actually blocked, the token’s market capitalization plummeted from over $5.7 billion. The project’s official account confirmed these recent developments in a statement.
SFM is currently trading at $0.00005186, continuing its downward trajectory, losing over 35% of its value in the last 24 hours. Furthermore, sustained selling pressure has caused the Relative Strength Index (RSI) to dip below 25.
This signals that the token is in the oversold zone and suggests a strong bearish trend.
SafeMoon initially encountered an exploit in March, resulting in a significant net loss of $8.9 million. The exploit involved transferring 32 billion SFM tokens from SafeMoon’s liquidity pool address to the platform’s deployer address.
This immediately caused the value of the token to skyrocket and the exploiter took advantage of this price increase. They achieved this by exchanging some of the SFM tokens for Binance Coin [BNB] at an inflated price.
In the end, 27,380 BNB were transferred to the hacker’s address. At the time of writing, these funds have not yet been successfully recovered.
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