Cryptocurrencies
Busted Hedges, Alleged Fraud Bankrupt Crypto Firm Cred Inc.
- Founder, ex-executive traded lawsuits over Cred Capital unit
- San Mateo-based Cred Inc. owes customers about $140 million
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Cryptocurrency investment firm Cred Inc. filed for bankruptcy Saturday after its founder and a top executive got into a bitter legal fight and the company’s Bitcoin hedging strategy foundered amid pandemic price fluctuations.
Cred Inc. says it was defrauded by its former chief capital officer, who tried to take control of a unit of the company and later ran off with around $3 million in Bitcoin that was meant to help the company rectify its hedging strategy. Cred Inc. owes its users around $140 million, according to court filings.