Cryptocurrencies

Cred Says Fraudulent Activity Led to Loss of Funds; Law Enforcement Investigating

1908 photograph of a vault door (Cleveland Trust Company, modified by CoinDesk using PhotoMosh)

Decentralized lending platform Cred says it has experienced “irregularities” in the handling of “specific” corporate funds by a “perpetrator of fraudulent activity” and is cooperating with law enforcement in relation to the matter.

  • CoinDesk learned via an emailed tip that Cred’s balance sheet has been “negatively impacted,” which prompted an investigation into “the loss of these funds.”
  • Upon being contacted by CoinDesk, the platform confirmed the “irregularities” and said it is carrying out “internal accounting” of its assets to determine the impact of “the incident.”
  • Cred has been advised by legal counsel to temporarily suspend inflows and outflows of funds relating to its CredEarn program, according to the company email.
  • An update will be provided within “the next [two] weeks,” the company said.
  • In a separate email shared with CoinDesk by the same source, trading platform Uphold told its customers it had “decided to discontinue its relationship with Cred.”
  • The move means customers of both Cred and Uphold would now be affected as they will no longer be able to move funds into Cred from their Uphold wallet nor view their Cred balance on Uphold’s platform.
  • Cred can still pay any redemptions due to clients straight into their Uphold wallet, according to Uphold’s email.
  • CoinDesk reached out to Uphold for further comment but did not receive a reply by press time.

See also: Visa Adds Crypto Lender Cred to Fast Track Payments Program

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