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Cred officially confirms the suspension of the inflows and outflows of funds

October 29, 2020

Cred, a US-based cryptocurrency lending service, has officially announced the temporary cessation of operations due to an ongoing investigation.

October 29th Cred executives they tweeted that the company is now working with law enforcement agencies to investigate a “recent fraudulent incident”.

As part of the ongoing investigation, Cred suspended “All inflows and outflows of funds”. The company expects to provide an update on this matter in the next two weeks.

Cred officially confirms the suspension of the inflows and outflows of funds
Cred officially confirms the suspension of the inflows and outflows of funds

The news comes shortly after Uphold, a major U.S. cryptocurrency wallet and trading platform. terminate the connection with Cred. On October 25, Uphold issued an official notice claiming the company had “ended its relationship with crypto lender Cred”.. Uphold disclosed few details about the cancellation and stated that Uphold users will no longer be able to link their Uphold wallet to Cred.

According to some Uphold users, Cred’s problems might have started earlier. A suspected Uphold customer, who also uses Cred’s CredEarn program, told Cointelegraph that he first faced a technical problem on October 15 that prevented departures.. According to the user, Uphold said that the problem was caused by Cred.

Shortly after Uphold “ended the relationship with Cred without explanation”, Cred deactivated the user communication for all members in the Cred-Telegram chat. The user claimed Bitcoin (BTC) and other assets worth around $ 140,000 are now locked in your credit account. When asked to comment on alleged customer issues on the platform, Cred CEO Dan Schatt said the company “appreciates the previous partnership with Uphold and will ensure that users are notified of updates to their account. From Cred”.