The Cred’s filing for bankruptcy has left many of the US-based platform’s users to question whether the personal funds stored in the platform are safe. The filing comes just over a week after an October 28th announcement that the platform would suspend withdrawals and deposits of funds on the platform for two weeks. The firm posted a statement on Twitter to reassure users that the suspension did not take place because the company was under criminal investigation–rather, the company said that the filing was an attempt “to maximize the value of its platform for its creditors.” The US-based startup suspended deposits and withdrawals more than a week ago.
1/2 We would like to further clarify that Cred is not under investigation.
Cred approached law enforcement to help investigate irregularities in the handling of specific corporate funds by a perpetrator.— Cred (@ihaveCred) October 30, 2020
Cred listed its assets and liabilities.
The US crypto firm listed its estimated assets at between $50-100 million and its estimated liabilities between $100-500 million. However, the platform did say that it was working with authorities “to help investigate irregularities in the handling of specific corporate funds by a perpetrator” after a “fraudulent incident” committed by “a perpetrator.” Before Cred suspended its deposits and withdrawals, crypto wallet and trading service Uphold abruptly ended its partnership with Cred without explanation. After the partnership ended, customers reported issues accessing their funds; one user claimed to have roughly $140,000 worth of Bitcoin and other assets locked in their Cred account.
“No Cred systems or customer information have been compromised.”
Cred has denied that any of its users’ funds are compromised in any way. The platform has also said that its systems and customer information remain intact. The platform’s withdrawals and deposits have been suspended for more than a week, and Cred’s Twitter account has not posted any updates since October 30th. Though Cred’s main website has been updated to include information about the bankruptcy, several users are still uncertain whether or not they will be able to access their crypto–or when.
