Investors Claim 'Madoff Level' Fraud At Bankrupt Crypto Firm

Law360 (November 19, 2020, 8:39 PM EST) -- A pair of customers of bankrupt cryptocurrency investment platform Cred Inc. are asking a Delaware bankruptcy judge to shift its Chapter 11 case to a liquidation, saying "Madoff level" fraud has left it with no viable future and likely more than $120 million in debt.

In a filing Wednesday, the investors said allegations of multimillion-dollar fraud and "profound incompetence" have irrevocably tarnished the firm's reputation, that the company probably has tens of millions of dollars more in liabilities than it claims, and that what assets remain are evaporating in the face of unnecessary salaries and bankruptcy costs.

"It is almost an...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!