Cred Files for Bankruptcy Following Fraud Incident
The suspended deposits and withdrawals were related to the company’s popular service called CredEarn, which allows crypto holders to deposit their cryptocurrency on the platform and earn interest.
The company clarified that its systems and customer data had not been compromised. As such, the incident was reportedly not a security breach or system hack.
In an email, Cred informed Crypto Briefing that the company is in the process of assessing the business impact of the fraud incident in consultation with its legal team.
“We know this limited information is not sufficient to understand the status of your funds, we deeply regret any stress this ambiguity has put on you. Many Cred employees, family members, and partners have their funds with CredEarn as well,” Cred’s support staff wrote to Crypto Briefing.