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Cred customers will request answers after the platform files for bankruptcy

November 9, 2020

The United States’ cryptocurrency lending service, Cred filed for Chapter 11 bankruptcy protection on Saturday so many customers are looking for solutions to get your money.

According to court records, Cred CEO Daniel Schatt’s legal team filed the company’s bankruptcy papers in the Delaware District on November 7th.

Cred had an estimated net worth of between $ 50 million and $ 100 million and its estimated debt of between $ 100 million and $ 500 million.

Cred customers will request answers after the platform files for bankruptcy
Cred customers will request answers after the platform files for bankruptcy

In an official statement, the company said so had submitted Chapter 11 to “maximize the value of its platform for its creditors”.

The bankruptcy filing follows an announcement on October 28th that the platform will suspend deposits and withdrawals for two weeks.. recognition explained on Twitter that the suspension was not due to a criminal investigation, but that the platform is working with the authorities “to investigate irregularities in the treatment of certain company funds by an offender”. quote a “fraudulent incident” as the cause.

Shortly before the announcement, the cryptocurrency wallet and trading platform Uphold ended its partnership with Cred. Cointelegraph reported that at least one Uphold user had technical issues with the platform’s CredEarn program, allegedly caused by Cred. Following the dissolution of the partnership with Uphold, the user said he had Bitcoin (BTC) and other assets worth approximately $ 140,000 on his cred account.

Has cred saying that none of its systems, customer accounts or customer information was compromised in the “fraudulent incident”However, it has not posted an update on Twitter or allegedly via email to its users since October 30th regarding the assets accessed through the platform.

“We just want to know that our funds are safe” said a twitter user. “Please address this in your next update, not in an announcement about the next announcement.”

The platform updated their website to include submission information in Chapter 11, but many users did not receive the message. Twitter user AwsomeNada he claimed On your last transaction, deposit 7,250 XRP (approximately $ 1,829 at press time) before deposits and withdrawals were suspended.

“I want to know how this can be resolved,” said AwsomeNada. “I need my money back today”.

The user they made similar claims of losing access to “thousands of XRP” and other assets I don’t know if your money was safe during the bankruptcy process.

While both deposits and withdrawals appear to remain inaccessible as Cred goes through the process in Chapter 11, other exchanges have also given users cause to realize the meaning behind “They aren’t your keys, they are not your coins.” . Withdrawals of digital assets have been closed on the OKEx crypto exchange since October 16. According to rumors, the founder was arrested by the police..