Why Are Execs of Bankrupt Companies Being Rewarded With Millions?
It’s hard to tell people not to be angry with capitalism when the system is rewarding failure with millions of dollars in bankruptcy bonuses.
Judge John Dorsey of the Delaware Bankruptcy Court rejected a motion to appoint a Chapter 11 trustee to oversee Cred’s restructuring.
Cred’s bankruptcy filing mainly blames fraud by an outside party. The full picture painted by former employees is more complex, and highlights the risks of the budding crypto lending market.
James Alexander was employed as the CCO of Cred, a crypto lender that filed for bankruptcy in November.
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.”
As cases rise and the U.S. settles in for a fresh wave of COVID-19, the economic fallout from round one is still being felt, from hedge funds to bankruptcies and beyond.