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Crypto Lending Disaster: Cred's Bankruptcy Documents Are Now Available to the Public

10 23 exc boost
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Written by   183
5 months ago

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

Another email, but this time not from Cred directly

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 do you think?

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...

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Written by   183
5 months ago
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Comments

Im sorry for those who have penny on cred

$ 0.00
5 months ago

Me too. Especially for those people who had quite a lot of money invested with Cred. I hope they will get most of it back.

$ 0.00
5 months ago

Again, everything went wrong. I pat your back my friend and say better lick next time. It went poof sadly! More will come!

$ 0.00
5 months ago

Thank you very much for your support, your comment and your tips. 😊 I highly appreciate it. And I have just seen that you published a new article that I will visit shortly. 😊 See you over there in a few minutes. 😊

$ 0.00
5 months ago

Again, sorry this happened friend. sadly, i'm not optimistic about any recovery of funds. i'm skeptical cred has any insurance to cover this type of loss.

i was not invested, but most of my crypto assets are in Coinbase, and BlockFi. yes, i realize most people prefer to have their own private keys, but i have my own reasons.

$ 0.01
5 months ago

That's a good friend you've got @moregainstrategies! =)

$ 0.00
5 months ago

That is true. 😊👍

@CryptoWordsmith and I actually met through blogging on another platform a couple of months back and have stayed in contact ever since. 😊

$ 0.00
5 months ago

👊

$ 0.00
5 months ago

Aww.. That's sweet 😁

$ 0.00
5 months ago

I share your sentiment and become less and less optimistic with every piece of information.

I hope Cred is the exception and not the tip of the iceberg. 🙈

Thank you for your support and thank you for sharing your thoughts.

$ 0.01
5 months ago