Cred is a cryptocurrency lending service based in the United States. On October 28, the platform suspended withdrawals and deposits for users. An official announcement indicated the hold on transfers would last two weeks. Users of the platform expressed surprise and frustration at the announcement at the time. Now they could have more reason to worry about their funds as Cred announced a bankruptcy filing on November 7.
Daniel Schatt Files Bankruptcy On Behalf of Cred On November 7
The CEO of Cred, Daniel Schatt, filed bankruptcy paperwork in the District of Delaware. In the filing, paperwork indicates company assets total up to $100 million. Liabilities, on the other hand, range from $100 million to $500 million. Cred's official statement makes it sound like the filing was done to protect the company's creditors. Such an announcement leaves Cred users in the dark with respect to their funds.
Complaints From Users As Funds Remain In Limbo With No Updates
Forums continue to feature posts from Cred users unable to access their funds. At this point, Cred hasn't made an announcement on whether users will regain access to funds held. Hundreds of users continue to complain they have no idea about the current status of their cryptocurrency holdings. Some users held hundreds of thousands of dollars in cryptocurrency on the platform. Currently, these users remain in total limbo.
A Hint Of Things To Come After Uphold Terminates Agreement With Cred
Cred users knew something was wrong right before the bankruptcy filing. Uphold announced a termination of a partnership with Cred. According to Uphold users, they weren't able to access their funds through Cred, which led Uphold to take action. There's no word on whether the bankruptcy filing is due to a hack of personal information or funds. It doesn't seem likely Cred will make an announcement to users for a few days.
What's Next For Users In This Saga?
For obvious reasons, a hack of funds would spell trouble for both Cred and its users. The funds cannot be returned to users if they're gone. None of that has been confirmed, but a lack of an announcement doesn't look good. In the end, cryptocurrency owners need to remember they don't control their own coins without controlling the software keys. Cred could turn out to be a disaster for dedicated users once this plays out.