Uphold exchange denies owing millions to failed crypto lender Cred
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Crypto exchange Uphold has denied owing around $784 million to the liquidation trust of bankrupt crypto investment platform Cred.
At a court hearing on Jan. 11, Uphold
Uphold denied the allegations it was aware of the risks at Cred, claiming Cred was owned and operated entirely independently. It also claimed that it was unaware of CredEarn’s financial troubles when it promoted the product to Uphold customers.
The motion also argued that it had nothing to do with Cred’s insolvency.
CredEarn “was owned, managed, and operated independently by Cred, and it was internal fraud and mismanagement that caused Cred’s downfall,” it read.
Related: Uphold becomes registered crypto-asset firm in UK post-FCA approval
At the hearing, the Cred trust’s attorney, Joseph B. Evans of McDermott Will & Emery, said that “claims against the insiders regarding their collaboration with Uphold had been resolved separately.”
Bankruptcy Judge John T. Dorsey said he wanted to see that settlement agreement, as the court took the matter under advisement.
Uphold is a global multi-asset digital trading platform that claims to have more than 10 million users across 150 countries. It offers trading services for crypto assets, fiat currencies, equities, and precious metals.
