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Crypto Lender Cred Files for Bankruptcy Following Alleged Fraudulent Activity

Crypto Lender Cred Files for Bankruptcy Following Alleged Fraudulent Activity

Crypto lender Cred filed for chapter 11 bankruptcy in the United States on Nov. 7, a month after the company said it was investigating fraudulent activity involving corporate funds.

  • Cred filed for bankruptcy in the state of Delaware, with assets of $50 - 100 million and liabilities of $100 - 500 million
  • Grant Lyon will handle the company’s restructuring process with MACCO Restructuring Group acting as financial advisor
  • In Oct. 2020, Cred said that it was investigating fraudulent activity with respect to its corporate funds and was carrying out internal accounting to assess the situation
  • Trading platform Uphold, which had worked with Cred, filed a lawsuit against the latter for failing to inform it about the incident
  • Uphold is suing Cred and its founders for fraud, breach of contract, and reputational damage
  • The trading platform says that it believes the hole in the balance sheet is a result of actions by a former Cred executive

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