DeFi Cred platform has filed for bankruptcy

09.11.2020
The decentralized lending platform Cred has filed for bankruptcy. Recently it became known that the company is investigating the fraud that led to the loss of assets.

According to Documents, Cred Inc filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Act in Delaware. In the petition, the company listed alleged assets with a value of $50 million to $100 million and liabilities ranging from $100 million to $500 million

Cred said in a press release that Grant Lyon was appointed to the company’s board of directors to oversee the restructuring process. He has also hired MACCO Restructuring Group as a financial advisor to assess mergers, acquisitions and other restructuring options;

Last month it became known that Cred’s balance sheet was «adversely affected», leading to cooperation with law enforcement agencies to investigate the loss of this money.

The platform team confirmed the problem and stated that they are conducting «internal accounting» of the assets to determine the amount of loss. At the same time, the Uphold trading platform informed its clients that it had «decided to terminate its relationship with Cred».

Let us remind you that last year one of the largest cryptovrency exchanges Binance concluded an agreement with Cred. Under the agreement, Cred has moved some of its ERC-20 tokens to Binance Chain and became the official supplier of credit solutions in the DeFi ecosystem