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Crypto lender Cred files for bankruptcy protection

Crypto lender Cred files for bankruptcy protection

Crypto lending and borrowing firm Cred has filed for Chapter 11 bankruptcy protection amidst allegations of fraud by a former executive.

In its filing in Delaware over the weekend, the company says it has estimated assets of between $50 million and $100 million but liabilities of between $100 million and $500 million.

The news comes weeks after Cred called in law enforcement over “irregularities” in the handling of “specific” corporate funds by a “perpetrator of fraudulent activity”.

Cred partner Uphold says it believes the bankruptcy filing "results from the alleged actions of a former executive of Cred".

Uphold, a crypto trading platform, now plans to sue Cred and its founder for fraud, breach of contract and reputational damage. Any proceeds will go to Uphold customers who have lost money at Cred.

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