Share this article
Crypto Lender Cred Files for Bankruptcy After Losing Funds in Fraud
In October, the lender published a cryptic letter saying it has experienced “irregularities” in the handling of “specific” corporate funds by a “perpetrator of fraudulent activity.”
Updated May 9, 2023, 3:13 a.m. Published Nov 8, 2020, 7:17 p.m.
Crypto lender Cred Inc. filed for Chapter 11 bankruptcy protection in Delaware on Saturday.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
For more on Cred's bankruptcy, read this investigation published by CoinDesk on Nov. 12.
- In its filing, Cred listed estimated assets of between $50 million and $100 million and liabilities between $100 million and $500 million.
- In an emailed press release, Cred said Grant Lyon has been named to the company's board to oversee the restructuring process. It has also hired MACCO Restructuring Group as financial adviser to evaluate M&A and other restructuring opportunities.
- In October, the lender published a cryptic letter saying it has experienced "irregularities" in the handling of "specific" corporate funds by a "perpetrator of fraudulent activity." In response, Cred said it had been advised by legal counsel to temporarily suspend inflows and outflows of funds relating to its CredEarn program.
- At the same time, wallet and trading platform Uphold told customers it had "decided to discontinue its relationship with Cred."
- Additionally, Uphold announced via a tweet on Sunday its intention to pursue legal reparations on behalf of its customers citing a "breach of contract, fraud and related claims."
- Cred may have already been in a tenuous position as several crypto lenders struggled to weather the bitcoin crash in March, with some making margin calls of $100 million or more.
- Cred CEO Dan Schatt did not immediately respond to a request for comment.
UPDATE (Nov. 8, 20:11 UTC): Adds assets/liabilities, new board member and hiring of restructuring firm.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
French Banking Giant BPCE to Roll Out Crypto Trading for 2M Retail Clients
The service will allow customers to buy and sell BTC, ETH, SOL, and USDC through a separate digital asset account managed by Hexarq.
What to know:
- French banking group BPCE will start offering crypto trading services to 2 million retail customers through its Banque Populaire and Caisse d’Épargne apps, with plans to expand to 12 million customers by 2026.
- The service will allow customers to buy and sell BTC, ETH, SOL, and USDC through a separate digital asset account managed by Hexarq, with a €2.99 monthly fee and 1.5% transaction commission.
- The move follows similar initiatives by other European banks, such as BBVA, Santander, and Raiffeisen Bank, which have already started offering crypto trading services to their customers.
Top Stories
