SafeMoon is in Chapter 7 liquidation, with the trustee’s current work centered on claims administration, estate monetization, and a widening litigation campaign to recover cryptocurrency, cash, and other value for creditors. The case began when SafeMoon US, LLC filed a Chapter 7 voluntary petitionDkt. 1 on December 14, 2023, after the cryptocurrency business had been overtaken by allegations that former insiders misused token liquidity mechanisms, diverted digital assets, and left the estate facing creditor and token-holder claims.
The estate’s recovery path is now principally adversary-driven. In December 2025, trustee Ellen E. Ostrow sued former executives, family members, promoters, and affiliated entities, alleging an embezzlement and fraudulent-transfer scheme of at least $100 million tied to SafeMoon token liquidity pools, insider withdrawals, and personal asset purchases in the fraudulent transfer complaint against Karony, Nagy, Smith, and related defendantsDkt. 1. The trustee also filed targeted recovery actions against BitMart for turnover of roughly $1.474 million in withheld USDT, USDC, and SafeMoon tokens in the BitMart turnover complaintDkt. 1, against WebDBTech to recover about $5 million in alleged avoidable transfers and disallow a $900,000 claim in the WebDBTech fraudulent transfer complaintDkt. 1, and against unknown parties connected to the March 2023 smart-contract exploit in the .
The near-term posture is administrative but consequential: the trustee is building infrastructure to process token-holder and class-action claims while continuing to resolve estate assets and claims. The court approved a $50,000 development contract for a hosted dApp that will verify wallet ownership, analyze SafeMoon V1 and V2 activity, link wallets to Stretto claim identifiers, and export encrypted results for trustee review, with development expected to begin within seven days of the May 19, 2026 order and take about six weeks under the order granting the trustee’s motion to pay developersDkt. 392. Recent docket activity also shows ordinary estate clean-up, including approval of an AWS settlement allowing a $117,000 administrative claim in full satisfaction of AWS’s administrative claims through the AWS settlement orderDkt. 389 and abandonment of a Jeep Gladiator after no objections in the notice of abandonmentDkt. 390.
