Crypto lending platform Cred has filed for Chapter 11 bankruptcy protection in Delaware on Saturday. The move left many of its customers wondering how they can get their hands on their funds while a crypto wallet and trading platform severed its ties with the lender.
November 9, 2020 | AtoZ Markets – Crypto lender Cred Inc., which has joined the Visa ecosystem, has filed for bankruptcy after identifying a fraud. The company filed documents in Delaware on Saturday, November 7.
Crypto lender Cred files for bankruptcy
Based in the United States, Cred valued its assets at $ 50-100 million, and its debt obligations at $ 100-500 million. In a press release, the company noted that it submitted the application “in an attempt to maximize the value of the platform for lenders.”
Over the past two weeks, the native token Cred (LBA) has dropped from $0.016 to $0.0009.
Previously, Cred reported violations in the management of “certain” corporate funds due to “fraudulent activities”. According to them, personal data and other information of users were not affected.
2/2 We also want to acknowledge the concerns expressed about Cred being hacked. We can tell you that's not the case. No Cred systems, customer accounts, or customer information have been compromised.— Cred (@ihaveCred) October 29, 2020
The company has suspended the withdrawal and crediting of funds. Later, the Uphold trading platform, whose clients used Cred to make money on their assets, announced the termination of cooperation with the platform.
As a reminder, in September the company joined the Fast Track program of the payment giant Visa.
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