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.
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Author: Mike Rogers