DeFi Cred Platform Filed For Bankruptcy

Decentralized lending platform Cred filed for bankruptcy. Recently it became known, that the company is investigating fraud, resulting in loss of assets.

According to the documents, Cred Inc has applied for bankruptcy by chapter 11 US Bankruptcy Law In the state of Delaware. In the application, the company indicated the estimated assets in the value of $50 to $100 Milln and obligations from $100 to $500 million.

In a press release Cred reported, that Grant Lyon (Grant Lyon) was appointed to the board of the company's directors to monitor the restructuring process. He also hired Macco Restructuring Group as a financial consultant to assess the possibilities of mergers, absorptions and other restructuring options.

Last month it became known, that the balance of Cred assets "had a negative impact", Which led to cooperation with law enforcement agencies to investigate the loss of this money.

The platform team confirmed the availability of the problem and said, that conducts "internal accounting" of assets to determine the amount of losses. Then the Uphold trading platform informed its clients, that "I decided to stop relations with Cred".

Recall, that last year one of the largest cryptocurrency exchanges in Binance entered into an agreement with Cred. As part of the agreement, Cred transferred part of its ERC-20 tokens to the Binance Chain blockchain and became an official supplier of credit solutions in the Defi ecosystem.