Investigating the Downfall of Cred Inc.
- Online cryptocurrency lending platform, Cred, abruptly filed for chapter 11 bankruptcy protection in Delaware on November 7th, 2020.
- Initially known as Libra Credit, the company raised $26.4M with the LBA Token ICO in May 2018, only for the token to lose over 96% of its value since then.
- There is a lot of recent controversy surrounding Cred’s affiliated entity, Cred Capital, which led to the firing of a Cred Executive who allegedly misappropriated $2M in digital assets.
- Two ongoing California civil lawsuits allege different interpretations of Cred Capital’s intended structure, ownership and purpose.
- As for Cred Inc.’s bankruptcy, the Block Research followed the trail of online ‘bread crumbs’ and court filings to help paint a picture, albeit an opaque one.
- Only time can provide clarity, as more details become public.
This research piece is available to
members of The Block Genesis.
You can continue reading
this Genesis research on The Block.
Go to Source
Author: Mike Rogers