Cred, the crypto-lending platform, reports loss of funds due to fraud

The Cred crypto-lending platform, which has joined the Visa ecosystem, notified its users of an incident that required law-enforcement involvement. According to CoinDesk.

Cred representatives say that the platform was affected by breaches “in the process of handling certain corporate funds by the perpetrator of fraudulent activity.” This adversely affected the balance sheets. The platform did not specify the amount involved.

Law enforcement authorities are conducting the investigation into the loss. The company noted that it is conducting an internal audit and will present a detailed report within the next two weeks.

Withdrawals and deposits under the CredEarn program are suspended. The service assured users that their personal data and other information have not been compromised.

On Cred’s Twitter support account, customers expressed dissatisfaction with the lack of communication and new information.

Unless for legal reasons, how is this even professional? @ask_Cred @ihaveCred No announcements? No communication? No updates? True colors are starting to show here.

— DJ Snyder (@DJ__Snyder) October 27, 2020

The Uphold trading platform, whose customers used the platform to earn from their assets, announced it would terminate its relationship with Cred “for commercial reasons”.

Hi there — We have terminated our relationship with Cred for commercial reasons.

— Uphold (@UpholdInc) October 27, 2020

It is reported that users will not be able to link Uphold wallets to Cred. Only payouts from the CredEarn program will be available to them once it resumes.

Earlier in September, Cred became a participant in Visa’s Fast Track program. This integration allowed the platform to issue crypto-credit cards, extend fiat loans against them, and send payouts to Visa client bank accounts.

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