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Crypto lender Cred files for Chapter 11 bankruptcy protection

Crypto lender Cred files for Chapter 11 bankruptcy protection

Cred Inc. and its subsidiaries (“Cred”) filed for protection under chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). Cred has made all court filings available for free at Donlin Recano law firm.

As we posted in October, the lender published a vague notice mentioning that Cred had experienced “irregularities” in the handling of “specific” corporate funds by a “perpetrator of fraudulent activity.” In response, Cred said it had been advised by legal counsel to temporarily suspend inflows and outflows of funds relating to its CredEarn program.

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An email from law firm about the
Case #: 20-12836

The Crypto Exchange Uphold which had partnered with Cred also proclaimed it “plans legal action against Cred and its principals for breach of contract, fraud, and related claims.” Uphold also added in a statement that any funds recovered from the lawsuit will be used to reimburse Uphold customers who have lost funds with Cred.

The CEO of Uphold has been publicly offering advice to victims of the fraud on Twitter. Even as one user of the Cred service who had lost all their savings. Combined with the stress of the current pandemic, it must be a really tough time for them right now. Good to see JP Thieriot, CEO of Uphold getting out there although Cred CEO Dan Schatt has been available for public comment.

About The Author

Simon Lee

I like data to be encrypted, the net to be neutral, and technology to be simple to use.

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