Crypto DeFi Company Cred has Disclosed it was the Victim of Fraud
Another bruise for the Crypto and Defi space, today Cred (US) LLC sent out an e-mail to CredEarn clients disclosing that there are "irregularities" and "fraudulent activity" that has "negatively impacted" their balance sheet. This matter is being investigated by law enforcement and they are currently assessing the impact on their business.
Earlier in the day Uphold sent out a notification to customers that they have ceased their business relationship with CRED, with no further comment about the situation.
Here are some questions the media should be asking and Cred should be answering.
Approximately what percentage of Capital has Cred lost in this incident?
What does this mean to CredEarn customers that currently have investments?
If there are losses to their reserves how will Cred return at least the principal to investors?
How will Cred decide who they return capital to first?
Did the Crypto that was stolen/taken belong to particular Cred clients or was it just taken from their pool of capital?