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Crypto Lending News Update -- CredEarn: Not Hacked, But Fraud

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Written by Β Β 174
6 months ago

I have previously reported on the fraud that Cred supposedly became a victim of with their CredEarn program.

CredEarn offered its customers to earn interest for lending various cryptocurrencies. The borrowers had to deposit a colleteral which was supposed to reduce the risk associated with the lending process. CredEarn was heavily advertised on the Uphold custodial wallet. Yesterday Uphold announced that they cut all ties to Cred. You can read my report about that here.

In a first email to its customers, Cred announced that they freeze all funds. They mention that their balance sheet was negatively affected and that they launched a criminal investigation.

Many readers were not happy with Cred for releasing very little information, especially with regard to the safety of the investments.

Cred has just sent another email. Let's have a look if they give us some more information:

We are writing to update you with additional information on your CredEarn Program.

I'm happy to hear that.

Cred is still in the process of assessing the business impact of a fraud incident in consultation with its Counsel and specialists.

Hmmm. That doesn't sound like we will be getting a lot of new information. πŸ™„

We are working hard to assess the situation and expect to share more next week.

Hmm once again. πŸ™„

For now, all inflows and outflows of funds will remain temporarily suspended for the November 1 program.

OK. Im pretty sure we knew that already. We'll ok, the update is that funds will be frozen for the entirety of November as well if I'm not mistaken.

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.

OK, good. So it wasn't a hack. But what about our investments?

We know this limited information is not sufficient to understand the status of your funds,

You got that right...

we deeply regret any stress this ambiguity has put on you. Many Cred employees, family members, and partners have their funds with CredEarn as well.

Ok, so let's hope for everybody that everybody will get his or her investments back.

I know that this is supposed to reassure us that there was no harm done intentionally from Cred, but they don't state how much the employees, family members or partners invested. The minimum investment was $10, so that statement is technically true if all of the above invested $10 each...

Being the pessimist in this matter, I do actually wonder: If the funds can only be partially recovered, will employees, family members or partners receive preferential treatment? I hope not. If Cred takes responsibility for whatever it was that happened, maybe customers without any ties to Cred should receive refunds first... (I doubt that's what will happen.)

Thank you for being vocal. We want you to know your voice is being heard; and we are committed to keeping you updated on the situation.

Wow, that actually sounds like they wrote that part only in the email they sent to me. πŸ˜… Are they reading my blog? πŸ˜…

Sincerely,

The Cred Team

Ok, so that is the end of the email.

To summarize

  • Funds (or whatever might be left of them) will remain frozen.

  • It wasn't a hack.

  • No private information was stolen.

  • The fraud is still of unknown extent.

  • No reassurance that investors will get a full or partial refund.

  • Cred employees, family members and partners are affected to. (To an undisclosed extent.)

What do you think? Did Cred manage to calm your nerves with this message? Or are you now more nervous than before?

Let me know in the comments!

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Written by Β Β 174
6 months ago
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Comments

Hola, excellent article and very useful, I just subscribed to follow you, I have more than 2,000 dollars frozen, I bought the lba to have better commissions and the compound interest plan. I intended to get everything out in December because I have been without a job since March, living in Latin America, so you can imagine my concern. To increase the drama, I am the father of 3 small children and I must make a face of nothing happens when I am with them ... Saludos and hopefully we all get our money back.

$ 0.00
5 months ago

Β‘Encantado!

Oh no, I feel for you, man! That's a terribly unlucky situation. I definitely keep my fingers crossed for you. Let's hope for the best.

I recently read that they had an insurance which also covers fraud. I don't know why they did not mention that in any of the emails they sent. If the insurance covers the damage, we are safe.

Β‘Hasta luego!

$ 0.00
5 months ago

i'm not invested, but it wouldn't make me feel better reading this.

also sorry this happened to you.

$ 0.00
6 months ago

Yeah, that's a bit sad, but I'm relieved that it wasn't more I invested.

At least I can get a part of it back by blogging about it from a first-hand experience πŸ˜‚

$ 0.00
6 months ago

yes, monetize it! sounds like you are in good spirits...πŸ‘

good thing rusty is helping out a bit!

$ 0.00
6 months ago

Yeah, Rusty is hit and miss for me. πŸ™ˆ

Sometimes, he appreciates my content a lot, sometimes he doesn't at all. I'm really baffled as to what makes the difference. πŸ™ˆ

$ 0.00
6 months ago

Yes, you're definitely right about that. It is a bit worrisome that they still don't know or don't disclose the extent of the damage. They don't even give an estimate. Maybe the crypto is still in the process of being stolen and somehow it got stuck and they try to get it back?

$ 0.00
6 months ago

Nice comment. Sounds very familiar. Almost like I wrote it myself. πŸ˜‰

$ 0.00
6 months ago

thank you

$ 0.00
6 months ago

Good one

$ 0.00
6 months ago

Thank you so much. πŸ‘

$ 0.00
6 months ago

A full detailed information about this is supposed to be released by CredEarn, else, people will start to think otherwise and it's be a huge case

$ 0.00
6 months ago

Yes, you're definitely right about that. It is a bit worrisome that they still don't know or don't disclose the extent of the damage. They don't even give an estimate. Maybe the crypto is still in the process of being stolen and somehow it got stuck and they try to get it back?

But I can hardly imagine that that is the case. Usually fraud takes place very rapidly.

$ 0.00
6 months ago

I am sad to hear that but in the online world even way before crypto we had to be on the lookout for scams.

It has gotten so much easier for scammers to steal millions. I have always trusted uphold and I almost used cred.

Something happened in the process that made me turn away. I am glad I did. Thanks for sharing the information.

I look forward to an update in the near future. I hope everyone is reimbursed.

$ 0.00
6 months ago

That is so true. Both the online world and the investment world are notorious for scams and fraud. So much so, that this South Park clip has become a meme: https://youtu.be/-DT7bX-B1Mg

I'm also glad that you didn't use their service. I even took screenshots and wanted to write an article explaining how to invest with Uphold and CredEarn. I'm glad I didn't do that. πŸ™ˆ And I'm glad I didn't recommend using CredEarn to friends and family. πŸ™ˆ

I definitely hope that all investors will be reimbursed. Let's hope for the best.

$ 0.00
6 months ago

Yeah that clip is so true lol

$ 0.00
6 months ago

πŸ˜πŸ‘

$ 0.00
6 months ago

Well, this is concerning. I spent a lot of time looking at Cred and they certainly seemed reputable and trustworthy. Their KYC process was thorough too, and the link with Uphold gave me confidence. Fortunately I decided not to put my crypto there simply because their minimum program length seemed a little restrictive. A lucky escape perhaps!

$ 0.00
6 months ago

Yes, that was definitely a good decision. πŸ‘

I intended to hodl my crypto long-term, that's why the 6-month program length was not an obstacle to me, unfortunately. πŸ™ˆ

To me, they also looked trustworthy.

$ 0.00
6 months ago

Very helpful article, thank you for this

$ 0.00
6 months ago

You're welcome. Thank you for your comment. πŸ˜ŠπŸ‘

$ 0.00
6 months ago

No problem

$ 0.00
6 months ago

I told you it is fraud related

$ 0.00
6 months ago

Yes, you were absolutely right. πŸ‘

$ 0.00
6 months ago

Did the reassurance, made you feel better? I hope they're not just giving false hope.

$ 0.00
6 months ago

Kind of. I do believe them that they were not intentionally scamming their customers, but I'm not sure how much hope I can have to get my investments back. Unfortunately, I put about 25% of all my crypto into CredEarn. Fortunately, I have not started to put larger sums into crypto. πŸ˜… Therefore, I might have lost less than $50. But I know someone from another blogging platform who invested $12 000. πŸ˜” I really hope that he gets all or at least most of it back.

$ 0.00
6 months ago

Lucky enough but still you want your money back. Oh really 😢, I hope he gets it back, that's a lot of money! I can imagine how he feels!

$ 0.00
6 months ago

Yes, $12 000 is a lot to loose. I hope that wasn't all he had.

As to my investments: I hope I will get it back, but I'm very relieved that it wasn't more. πŸ˜…

$ 0.00
6 months ago

I know. I remember investing money hoping to make a profit/dividends out of it and end up getting at least half (grateful still could be worst) back of my money because the one holding the money runaway out of the country πŸ˜† Calm yourself lol

$ 0.00
6 months ago

Oh no. That's terrible. It actually reminds me of a South Park clip. Have you heard of South Park?

That is the clip: https://youtu.be/-DT7bX-B1Mg

By now, it is pretty much a meme. 😁

$ 0.00
6 months ago

I just show that clip on my husband and told me I hope my crypto investment don't end up like that hahaha poof! Gone!

$ 0.00
6 months ago

Hehe. πŸ˜‚πŸ‘ South Park just nails it sometimes. 😁

$ 0.00
6 months ago

Hahaha, that's hilarious! 🀣

$ 0.00
6 months ago