Crypto Lender Cred Files for Bankruptcy Following Alleged Fraudulent Activity

By Abhimanyu Krishnan | News | 9 Nov 2020


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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Abhimanyu Krishnan
Abhimanyu Krishnan

Technophile, cryptocurrency enthusiast and journalist.


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