{"id":277049,"date":"2020-11-09T05:14:38","date_gmt":"2020-11-09T10:14:38","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=277049"},"modified":"2020-11-09T05:14:38","modified_gmt":"2020-11-09T10:14:38","slug":"cred-files-for-bankruptcy-customers-demanding-answers","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/cred-files-for-bankruptcy-customers-demanding-answers","title":{"rendered":"Cred Files For Bankruptcy, Customers Demanding Answers"},"content":{"rendered":"
Cred stands as a crypto lending service based in the US. On Saturday, Cred had filed for Chapter 11<\/a> bankruptcy protection, which has left many customers looking for solutions in order to gain their funds.<\/p>\n As the court documents stipulate, Danial Schatt, the CEO of Cred, had its legal team file the bankruptcy papers for the company on the 7th of November, 2020, submitting it to the District of Delaware.<\/p>\n This bankruptcy filing comes after an announcement made on the platform on the 28th of October, 2020. This announcement stated that they would be suspending the fund outflows and inflows for two weeks.<\/p>\n On its Twitter account, Cred was adamant that this filing was regarding any form of criminal investigation. Instead, it just so happened that the platform was working with the authorities in order to help investigate irregularities where a perpetrator handled specific corporate funds.<\/p>\n As such, Cred\u2019s platform claimed that this wasn\u2019t a criminal activity, but a \u201cfraudulent incident,\u201d which is obviously not criminal in the slightest.<\/p>\n <\/a><\/p>\n Another suspicious factor is how Cred managed to lose its partnership with Uphold, a crypto wallet<\/a> and trading platform, just before the announcement. It was reported prior to this partnership termination that Uphold clients were struggling with the CredEarn program of the platform, alleging that the problem was from Cred\u2019s side.<\/p>\n After Uphold\u2019s partnership was revoked, this user stated that around $140,000 worth of Bitcoin and other crypto-assets were now locked within his Cred account.<\/p>\n According to Cred, who states that this was all a fraudulent incident and not a criminal incident, assured the public that none of its customer accounts, systems, and customer information was compromised during this \u201cincident.\u201d<\/p>\n https:\/\/twitter.com\/ihaveCred\/status\/1322294902940602368<\/p>\n Even so, Cred has yet to issue an update on Twitter, or even email its users, since the 30th of October in regard to assets within the platform.<\/p>\n One Twitter user stated that they only want to know if their funds were safe, begging Cred to detail this in their next announcement.<\/p>\n The platform had its website updated, however, showing the information about the Chapter 11 filing. Even so, many users failed to get the message, with many having a significant amount of funds transferred just prior to the blockage of funds.<\/p>\n Through this chaos, yet another prime example is given from the old saying of \u201cNot your keys; not your crypto,\u201d as any centralized exchange ultimately holds the control over your cryptocurrencies<\/a>.<\/p>\n The hope is, however, that regulators will be able to keep you safe by way of oversight should this happen. With any luck, this problem will turn out the best for the unfortunate investors.<\/p>\n","protected":false},"excerpt":{"rendered":"No Criminal Activity, Just A Fraudulent Incident<\/h2>\n
Promises of No Compromised Platform Facets<\/h2>\n
Many Lost Without Access To Their Funding<\/h2>\n