Cred, a US-based cryptocurrency lending service, has officially announced the temporary suspension of operations due to an ongoing investigation.
On October 29, the leaders of Cred tweeted that the company is now cooperating with law enforcement authorities to investigate a “recent fraudulent incident”.
As part of the ongoing investigation, Cred suspended “All cash inflows and outflows.” The company plans to provide an update regarding the issue within the next two weeks.
Unfortunately, we are unable to comment further at this time, but we are committed to providing an update within the next 2 weeks. During this period, all inflows and outflows were suspended.
– Cred (@ihaveCred) October 29, 2020
The news comes shortly after Uphold – a major US cryptocurrency wallet and trading platform – ended its partnership with Cred. On October 25, Uphold released an official notice claiming that the company had “severed its relationship with third-party crypto loan provider Cred.” Uphold provided some details regarding the termination, stating that Uphold users will no longer be able to link their Uphold wallet to Cred.
According to some Uphold users, Cred’s problems may have started earlier than that. A so-called Uphold customer who also uses Cred’s CredEarn program told TBEN that he first encountered a technical issue preventing cash outflows on October 15. According to the user, Uphold said the issue was caused by Cred.
Shortly after Uphold “ended the relationship with Cred without explanation,” Cred turned off user communication for all members of the Cred Telegram chat, the user said, stating that around $ 140,000 in Bitcoin (BTC) and other assets are now locked in his Cred account.
Asked for comment on alleged customer issues on the platform, Cred CEO Dan Schatt said the company “appreciates the past partnership with Uphold and will make sure users are notified of any updates to their Cred account.