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Cryptobank Uphold Sues Cred For Fraud

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Cryptobank Uphold Sues Cred For Fraud

Cryptobank Uphold Sues Cred For Fraud
CONTENT

  • Cred “betrayed” Uphold and all of its clients due to late bankruptcy notice

  • Cryptocurrency lending service owes clients up to $ 500 million

  • Uphold plans to split financial gains in court among its clients affected by Cred

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Cryptobank Uphold intends to sue the cryptocurrency lending service Cred due to the sudden bankruptcy of the platform

The financial service Uphold plans to sue the cryptocurrency lending service Cred, as well as its founders for fraud, breach of contract and damage to reputation. The company announced this on its official website. Uphold claims to have made the decision to go to court because of a material misconduct and insufficient disclosure of Cred’s financial self-sufficiency..

Cryptobank Uphold Sues Cred For Fraud

“Many Uphold employees and their families, including our CEO, CTO and CFO, have invested significant personal amounts through Cred, so we share the pain and stress of users who, like us, feel cheated and betrayed by Cred.” in the message.

Uphold declined to comment on the amount of compensation due to the bankruptcy of the cryptocurrency service. The amount of compensation, according to Uphold, will depend on the results of the bankruptcy procedure..

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Promising bankrupt

We will remind, on Saturday, November 7, cryptocurrency service Cred filed for bankruptcy due to the inability to fulfill its obligations to customers. Uphold suggests that Cred’s financial insolvency resulted in the policy of “former Cred executive”.

Cred calculated their debt obligations in the amount of up to $ 500 million. At the same time, the company has only $ 100 million on its balance sheet. Against the background of the bankruptcy announcement, the native token As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More Cred (LBA) plunged almost 7% to $ 0.0088. On a weekly scale, the token sank 12%.

Source: coinmarketcap.com

Uphold notes that the decision to sue Cred also stems from a breach of the credit service “of its contractual and fiduciary obligations”, as the service did not inform Uphold of the problem until the company itself contacted Cred on Friday, October 23.

It is reported that any proceeds that Uphold may receive through the lawsuit will first be distributed to users who have lost funds due to Cred. Uphold also pledged to cover legal fees.

Cryptobank Uphold Sues Cred For Fraud

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The issue of bankruptcy in the cryptocurrency lending market has been especially known since the advent of the decentralized finance market (DeFi) Decentralized finance (DeFi) is a financial services built on the basis of blockchain technology that offer users access to an open, efficient and … More). As previously reported by BeInCrypto’s reaction, Cream Finance’s DeFi lending platform faced bankruptcy in early October due to an excessive volume of pledged tokens..

What other threats exist in the decentralized lending market – read the special material BeInCrypto.

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