Just a few minutes ago I received another email regarding the disaster around the crypto lending platform Cred.
As you may already know, Cred offered a crypto lending program to Uphold's customers. Uphold is a custodial wallet that Brave uses to pay out its rewards.
Cred's motto was "we lend out your crypto to borrowers who leave a collateral with us as security. Don't worry, all loans are over-collateralized. Don't worry, we're insured. And you can collect 4% -- or even more -- as interest for your crypto. What could possibly go wrong?"
Everything, apparently. As Cred files for chapter 11 bankruptcy right now...
I reported about their strange way of communicating with their customers (I am one of them, unfortunately) before. They sent a few emails claiming that Cred fell victim to some undisclosed fraud. Actually, before Cred sent any message at all, Uphold announced via email that they stopped all collaborations with Cred. It was only then that Cred sent its first email. The first one was closely followed by a second. And finally, after about two weeks of waiting, the most recent email from Cred announced that they are filing for bankruptcy...
The sad highlights so far in Cred's communication:
No reassurance regarding the safety of customer's funds
No mention of Cred's insurance and if it will cover the damage
No information about the specifics of what happened or how much damage was done
Just now I received another email concerning Cred's filing for bankruptcy. This time, the author is not Cred itself, but Cred's legal representation. That's also the reason why I won't publish a copy or a screenshot of that email. The fine print prohibits that and ultimately, I don't want to get sued. I already lost some money that I "invested" with Cred and I don't want to risk losing another Cent because of Cred... Instead, I will summarize what is written in the email and hope that I'm on the safe side with this solution.
Dear person who will probably not see a single Penny of the funds you put into Cred,
Cred filed for chapter 11 bankruptcy in the Bankruptcy Court for the District of Delaware.
If you want to see the court documents, click here.
Whenever Cred has to send you an email, because the law forces them to, they will send you an email.
They specify the events that will force Cred to write an email. Cred can also send you a letter instead (if you live in the nineteenth century). And you can get physical copies of the court documents (if you hate trees and don't own a printer)...
That's basically it.
PS: If you copy any part of the email, we make your life hell.
Therefore, we can now have a look at the legal documents.
What caused all of this to happen? Will investors get any of their funds back? Where are the assets? Did Cred actually have any insurance at all? Were you invested with them?
Let me know in the comments!
Thank you for reading and let's hope for the best. But let's prepare for the worst...