SafeMoon SFM

What the record shows

A federal jury in Brooklyn convicted the chief executive of SafeMoon US LLC on May 21, 2025 [1] [2]. The three counts were conspiracy to commit securities fraud, wire fraud, and money laundering. On February 10, 2026 he was sentenced to 100 months in prison and ordered to forfeit about $7.5 million [2].

The court entered judgment on March 9, 2026 and set restitution at $3,347,046.66 on May 11, 2026 [3]. He has filed notices of appeal [3]. The company’s chief technology officer pleaded guilty in February 2025, and a third defendant remains at large, according to the DOJ [2] [4].

The SEC filed a civil case on November 1, 2023 and published it as Litigation Release No. 25888 [4]. Its claims are allegations. The verdict is not.

What the chain shows

SafeMoon has two contracts on BNB Smart Chain. BscScan marks the first, SAFEMOON, as migrated to the second, SFM, and names the new address [5] [6]. Neither page states a migration ratio or a deadline, so neither is claimed here. A bankruptcy court order of April 23, 2024 listed the SFM v1 and v2 tokens and their smart contracts as token assets for sale, and left approval of that sale to a separate motion [14].

The claim window

SafeMoon US LLC filed for chapter 7 bankruptcy in the District of Utah, and the general bar date for claims in that case was July 22, 2024 [8]. A class action over SFM purchases produced three proposed settlements, and on June 22, 2026 the court granted preliminary approval [7] [9]. The settlements stay proposed until the court rules after the hearing.

The settlement with the chapter 7 trustee covers people who bought SFM directly from SafeMoon US LLC, or bought because of its solicitation, from March 8, 2021 through November 1, 2023 [7]. The administrator’s site states three dates: exclusion requests and objections by October 1, 2026, the settlement hearing on October 22, 2026 [9], and claims by November 9, 2026 [7]. A proof of claim already filed in the bankruptcy on or before July 22, 2024 needs no class claim form. The other two settlements have claim forms of their own [7].

For an objection, the administrator’s site says postmarked by October 1, 2026 [7]. The court-authorized notice says postmarked in its summary and received by that date in its instructions [13]. Conflict ledger row 11 records the difference; the date is the same in both.

Tax treatment

The conviction does not create a loss. A loss needs a closed transaction. The IRS Chief Counsel memo on crypto that has crashed says a token that still trades on an exchange is not worthless, and a holder who still controls it has not abandoned it [10]. The memo reads a worthlessness loss for an individual as a miscellaneous itemized deduction, and the statute now allows none of those for any tax year after 2017, with no end date [12].

A sale is different. The IRS FAQ says a sale of virtual currency for real currency is a capital gain or loss, reported on Form 8949 and summarized on Schedule D [11]. This site has not checked two questions against a primary source: how a settlement payment is taxed, and whether the swap from the first contract to the second was a taxable exchange.

What a holder can do

The recover-or-write-off table further down lists three things a holder can do with what is left. None of them is a recommendation. Each one produces a different receipt, and the IRS reads the receipt.