Visa-backed crypto-lending platform Cred files for bankruptcy

The Visa-backed crypto-lending platform Cred, which joined the Visa ecosystem, began bankruptcy proceedings after fraud was detected. The company filed for bankruptcy in the state of Delaware on Saturday, 7 November.

Cred valued its assets at $50-100 million, and its liabilities at $100-500 million. In a press release, the company noted that it filed the petition “in an effort to maximise value for creditors”.

Over the last two weeks, the native Cred token (LBA) fell from $0.016 to $0.0009.

Data: Messari.

Earlier, Cred reported violations in the management of certain corporate funds due to fraudulent activity. According to them, personal data and other user information were not affected.

2/2 We also want to acknowledge the concerns expressed about Cred being hacked. We can tell you that’s not the case. No Cred systems, customer accounts, or customer information have been compromised.

— Cred (@ihaveCred) October 29, 2020

The company paused withdrawals and deposits. Later, the trading platform Uphold, whose clients used Cred to earn on their assets, said it would discontinue its cooperation with Cred.

Earlier in September, the company joined Visa’s Fast Track programme.

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