Bankrupt Crypto Lending Platform Cred Had UK Fugitive in Charge of Funds
James Alexander was employed as the CCO of Cred, a crypto lender that filed for bankruptcy in November.
Cred, a cryptocurrency platform being investigated by the bankruptcy court in Delaware, had a U.K. fugitive as its chief capital officer (CCO).
James Alexander was employed as the CCO of Cred, the crypto lender that filed for bankruptcy in November with liabilities of between $100 million and $500 million.
Alexander had been convicted of crimes relating to illegal money transfers in the U.K. in December 2007 and sentenced to over three years in prison.
According to the court examiner's report filed Monday (see below), there was a prison break at the facility where Alexander was incarcerated and he was identified by the U.K. government as a fugitive.
The examination describes Alexander's "participation/involvement in poor decision-making" as a "recurring theme," and "an important figure in the story of Cred’s demise."
Alexander is said to have had "free reign" to choose how capital was raised and deployed, with scant oversight from Cred's board.
Cred's troubles started in March 2020 when the price of bitcoin crashed to around $3,500, against which the company's hedged positions were not insulated, the examiner said.
When CEO Dan Schatt became concerned about how his CCO had arranged Cred's finances, Alexander allegedly transferred over $2.3 million in U.S. dollars and bitcoin to his personal accounts.
See the full report below:
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