Cred, one of the most popular crypto money sites in the USA, announced its bankruptcy over the weekend. Crypto investors who have deposited money in Cred and keep their money here are trying to find out what to do with surprise.
A cryptocurrency wallet named Uphold released a press release on October 25, announcing the termination of its partnership with Cred. Cred users could not benefit from Uphold services due to this decision. Crypto platform Cred posted an announcement on October 28, just a few days later, announcing that all sending and withdrawals on the site were suspended. It was stated that this decision, which was expected to take two weeks, was taken not because of a legal problem, but because of some anomalies.
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
According to Cointelegraph news, many Cred users’ money remained on the site because of this decision. A Cred user said he couldn’t access his $ 140,000 Bitcoin. But these users are no longer just about suspending deposits / withdrawals.
First ceased operations, then declared bankruptcy
Cred posted an announcement on Saturday, November 7, and declared his bankruptcy. The company stated that the value of its total assets is between 50 million and 100 million dollars and the amount of debt is between 100 million dollars and 500 million dollars.
Cred executives announced that they will work with the firm named MACCO Restructuring Group for debt structuring and will receive consultancy from them. Grant Lyon will be responsible for the management of the process. This bankruptcy statement made by the company stunned users.
They started organizing to open a class action
Cryptocurrency users could benefit from Cred’s services and receive DeFi-based lending service. Cred, licensed from several different states in the USA; it offered its users a legal and partially reliable service. In addition, the fact that the managerial staff of the company consisted of well-known and expert names of the sector gave him a good prestige. But all this did not save Cred from bankruptcy.
Cred users are organized after these events and try to find a solution to the situation. According to a Reddit user post, victims have already started to come together via Telegram. According to his statements, people are now trying to find a lawyer who can deal with a possible class action. Users trying to get their money back by filing such a lawsuit are looking for global support.