The action recently sparked customers' questions on how to get their money.
Major Updates
- Cryptocurrency exchange, Cred files for Chapter 11 bankruptcy.
- Cred claims they are doing it for the benefit of their clients.
- Customers are worried because their transactions are being suspended.
- Cred is yet to address its customers on the new development officially.
Based on court documents, the bankruptcy was filed by the CEO legal team on the 7th of November 2020.
The company stated an estimated asset of $50M-$100M and an estimated liabilities of $100M-$500M. Cred noted that its action was to improve its worth for its customers.
This action comes after a statement released on the 28th of October, stating that it will stop fund flow for 14 days.
However, the firm explained that the suspension wasn't because of fraud investigations, but it is cooperating with authorities to look into the handling of certain funds.
Cred stated that clients' information and accounts were intact despite the incident but yet to provide an update on assets.
Users on Twitter stated that they want to be sure about their assets' safety, pleading that the platform addresses this in the next update.
Cryptocurrency withdrawals are still suspended on the OKex since the 16th of October due to rumors that the CEO is in police custody.
What do you think about the Cred bankruptcy issue? Let's discuss this in the comment section.
Source: Cointelegrah
