Court documents filed by the Cred Liquidation Trust allege the crypto lending platform paid over 516 bitcoin to a crypto whale for a bond that was essentially worthless.
A new court filing says Earnity purposely hid its ties to the crypto lender.
James Alexander was employed as the CCO of Cred, a crypto lender that filed for bankruptcy in November.
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.
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.”
Decentralized lending platform Cred says it's cooperating with law enforcement over a "loss of funds."
Decentralized lending platform Cred is the latest crypto firm to join Visa’s Fintech Fast Track Program with the goal of scaling faster.
Crypto lender Cred is bolstering its technical knowledge by bringing on an experienced CISO and CTO.
Crypto investors can "pledge" five different cryptos, including two stablecoins, to Cred and earn up to 10 percent interest in a new partnership with NBA star Spencer Dinwiddie.