November 24, 2020, 7:00AM EST
• 16 min read

Investigating the Downfall of Cred Inc.

Quick Take

  • Online cryptocurrency lending platform, Cred, abruptly filed for chapter 11 bankruptcy protection in Delaware on November 7th, 2020.
  • Initially known as Libra Credit, the company raised $26.4M with the LBA Token ICO in May 2018, only for the token to lose over 96% of its value since then. 
  • There is a lot of recent controversy surrounding Cred’s affiliated entity, Cred Capital, which led to the firing of a Cred Executive who allegedly misappropriated $2M in digital assets.  
  • Two ongoing California civil lawsuits allege different interpretations of Cred Capital’s intended structure, ownership and purpose.
  • As for Cred Inc.’s bankruptcy, the Block Research followed the trail of online ‘bread crumbs’ and court filings to help paint a picture, albeit an opaque one.
  • Only time can provide clarity, as more details become public.

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