Cred, a U.S. based crypto lending service has recently filed for Chapter 11 bankruptcy protection on November 07, 2020. This news has led the customers of the firm, searching for solutions in order to get their funds back. It is revealed that Cred has filed these bankruptcy papers in the District of Delaware. According to the firm, their estimated assets are between $50-100 million however, the estimated liabilities are around $100-500 million. The firm also stated that they took this step in order to maximize its value for the creditors. Cred Earlier Announced Suspension of Inflows and Outflows Back on October 28, 2020, Cred has also announced the suspension of inflows and outflows which lasted for two weeks. The firm has specified that it is not due to any criminal investigation, in fact, the platform was working with the authorities regarding several irregularities. This was the time when Uphold has also terminated its partnership with the firm. It was also reported that one of the users was facing several technical issues with the CredEarn program and it is believed that this was deliberately caused by Cred. However, the platform has claimed that none of the customer’s accounts or their information was affected in the fraudulent incident. Customers Want to Ensure Safety of Their Funds All the Cred customers are now looking for assurance from the firm regarding the safety of their assets. Users are eagerly looking to gain back access to their funds as many have reported that they are losing access to their assets. Even though the firm has not clarified anything that when customers will have access to their funds, it is clear that until and unless this Chapter 11 process won’t stop, it is not happening. Not only Cred, but there are also other digital asset exchanges as well that have suspended the withdrawals from the platform. One such case is OKEx where the digital assets withdrawals were closed on October 16, 2020, and it is still not resolved.
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