Cred Inc, a crypto investment firm, filed for bankruptcy defense in the District of Delaware on Saturday. Many customers were astonished by this legal move by the lending service. Cred register assets range within $50 million and $100 million and liabilities ranging within $100 million and $500 million in the Chapter 11 filing. Cred has debts accruing to over $140 million.
The company took to Twitter to reassure users. They said that they are working with authorities to investigate the fraud of particular company funds. It is speculated that the United states-based company decided after nasty legal battles between the founder and top executives. Cred Inc was accusing the former chief executive of stealing over $3million in Bitcoin to control its sections. They assured the customers that the filing was expected to improve the platform’s value for the lenders.
Partnership Withdrawal by Uphold
Just recently, Uphold, a cryptocurrency wallet and trading platform, discontinued its partnership with Cred. One Uphold user saw around $140,000 BTC and assets locked in the Cred account following the contract’s termination.
The company breached the agreement between the two companies. Uphold intends to sue the corporate entity, the Cred founders, and its associates for damaging the honor, fraud, and breach of contract. Uphold customers who saw their investments perish will be reimbursed when Uphold receives proceeds.
Dan Schatt, Cred Ceo, said that the company values the partnership they had with Uphold, and the users would be updated on current developments concerning their Cred accounts.
Who is Cred Inc
Cred is a licensed universal lending platform with customers in 183 countries. The company was established by former PayPal executives, and the capital location is the San Francisco Bay Area. The firm gives credit to customers and allows them to acquire over 15 cryptos and fiat currencies. They aim to harness the ability of blockchain to enable customers to benefit from affordable credit services.
Crypto Lending financial service was created for investors in need of cash while hanging on their cryptos. Investors can make extra money with affordable interest rates without cashing out their bitcoins.
Despite reassurance that the customer accounts and information are safe, the customers are worried and took their complaints to Twitter.
“We just want to know that our funds are Safe, said Twitter users. “Please address this on your next update, not an announcement to the next announcement.”