Crypto Lender Cred Files for Bankruptcy After Experiencing ‘Irregularities’
Cryptocurrency lender Cred had filed for Chapter 11 bankruptcy protection in Delaware, estimating in the filing it has assets between $50 million and $100 million, and liabilities between $100 million and $500 million.
In a press release, the firm said Grant Lyon was named to the company's board to oversee its restructuring process, and that it hired MACCO Restructuring Group as a financial advisor to evaluate mergers and acquisitions and other restructuring opportunities.
The filing comes after Cred published a cryptic letter in October revealing it experienced “irregularities” in the handling of “specific” corporate funds by a “perpetrator of fraudulent activity.” After it expernecied these “irregularities” Cred said it was advised by legal counsel to temporarily suspend inflows and outflows related to its CredEarn program.
At about the same time, cryptocurrency trading platform Uphold revealed it decided to discontinue its relationship with Cred.
