Whenever people fall for some rugpull or the scam, it all starts with a bait and then it continues to the scam that leads to the bankruptcy so that the people involved can legally escape. Which is the case of most of the centralized ponzi schemes too.
SafeMoon followed the same formula and has now managed to file for the bankruptcy. They started with pitching a token which was too good to be true and it was promised riches and the moon but in reality it was just turning out to be a pocketmoney of the makers.
Eventually they got caught by the SEC and now they are under the legal loop where they have to file the bankruptcy and also have to move mountains to get their hands out of the scheme which made them money but now they have to shurg it offf.
Let's talk about the SafeMoon Scam and how it turned out at the end.
It all started with Version 1 and then Version 2
Like every scam that has some inception point, this scam too has the inception point. The makers made a token with the name - "safely to the moon" into "Safemoon". This started into the March 2021. And then it started taking the pace and slowly shown the growth which made many people believe in their token.
A lot of people invested into it because on the media level the token seems to have worked out. And then version 2 was made with the upgraded smart contract. Which was just an excuse to see how much investors can bet on their new tokens and willing to invest into their scheme in the due process. Which many did and there was literally no issues caused upto this point.
Then comes Liquidity Pool Hack
Once you become the leader of the fund pool like any token. And it has any serious set of the value. You wonder is it a good idea to run with the money? You do feel like that and then you create the fake accounts, fake contracts and move funds with variety of hacks and this includes the liquidity pool and the null account where the tokens are burned.
So this hack made the owners enough money so that they can make the exit. And then suddenly Coffeezilla covers them. Which made the owners lose their sight on the game. And they start accusing everyone and the people involved including their own promoters like Dave Portnoy too. And from here the compass loses it's sight too.
SEC Fraud Allegations to Bankruptcy Journey
Meanwhile all this drama was going on. Not just the cop but the SEC started getting it's head. Because we all know they want such cases so that they can put up more cases against the cryptocurrency. And so they labled this scheme as fraud which is not a bad thing and it should be like that. And then comes the part of the bankruptcy.
Because legally you have to file it otherwise it could lead to the variety of funds that you have to return legally. So in the middle of the legal case the owners of the company are now filing the bankruptcy in an attempt to come out of the allegations and maybe just maybe find a safe way out of this legal moon.
SafeMoon being an altcoin which was designed to rug pull has done its job. It was upto the people to either believe it or sell off their assets before owners do and run. But many fall for it and made this a scam in a mainstream media. Like most of the scams, this too would have some legal loopholes, owners may suffer or may come out safe. And the life goes on.