Cryptocurrency Lending Platform Cred Files For Bankruptcy: Users Worry For Their Funds

  • Shortly after suspending withdrawals and deposits to its platform, the crypto lending service Cred has filed for Chapter 11 bankruptcy protection. 
  • CryptoPotato reported in late October that the US-based platform had temporarily suspended all funds inflows and outflows while assisting law enforcement agencies in investigating an “incident.” 
  • According to an official announcement from this past weekend, Cred INC. has “commenced a voluntary Chapter 11 case in the United States Bankruptcy Court for the District of Delaware to explore strategic alternatives.” 
  • Some of the alternatives include the restructuring of its balance sheet or the sale of the business as a going concern in a court-supervised process. 
  • The statement indicated that the cryptocurrency lending platform has customers in over 100 countries. The company intends to “use the Chapter 11 process in its attempt to maximize the value of its platform for its creditors.”
  • Although Cred previously claimed that none of its systems were compromised, users are hesitant to know what is happening with their funds, especially after this latest development. 
  • Additionally, Cred also announced the appointment of a new Independent Director to its Board – Grant Lyon. He will also serve as the Chair of the Restructuring Committee during the ongoing Chapter 11 process. 

 

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