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Cred customers want answers following the exchange filing for bankruptcy

Cred customers want answers following the exchange filing for bankruptcy

Quick take

1 minute read

  • Cred filed for a chapter 11 bankruptcy protection over the weekend which left many of its consumer base looking for answers in order to get their funds back.
  • Based in the United States, the legal team for the company and its CEO, Daniel Schatt filed for bankruptcy papers in the district of Delaware on the 7th of November.

The cryptocurrency lending service known as Cred filed for a chapter 11 bankruptcy protection over the weekend which left many of its consumer base looking for answers in order to get their funds back.

Based in the United States, the legal team for the company and its CEO, Daniel Schatt filed for bankruptcy papers in the district of Delaware on the 7th of November.

The company has listed its estimate in regards to the assets it has to be somewhere between $50 million and $100 million. Furthermore, they estimated its liabilities up to $500 million.

The company revealed in an official statement that it had filed for chapter 11 bankruptcy protection in an attempt to help “maximise the value of its platform for its creditors.“

At the end of last month on the 28th of October, the platform announced that it would be suspending all fund inflows and outflows for a fortnight. The company further stated on its official Twitter page that the suspension was not in relation to any criminal activity but that the platform was working with authorities to “investigate irregularities in the handling of a specific corporate front by a perpetrator”.

The wallet on the trading platform Uphold and its partnership with the company shortly before the announcement was made public.

To calm down some of its user base, the company said that none of its systems or not no customer accounts were compromised in the “fraudulent incident“. Despite this, they have not issued an update on Twitter since the 30th of October in regards to assets being accessed using the platform.

For more news on this and other crypto updates, keep it with CryptoDaily!

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