Cred, a crypto lending startup that recently failed, is suing Uphold for $50 million. Cred claims that Uphold's decision to delist its credit tokens led to the company's downfall. A lawsuit has been filed against Uphold Inc. by Cred, which is a lending platform for cryptocurrencies and digital assets. The suit alleges that the exchange caused serious losses to the company after it halted its accounts without warning. This is not the first time a company has blamed an erroneous policy update for causing them to go out of business - but this article will explore whether or not there was any merit to their claims or if they are just trying to find someone else to blame for their own mistakes. Cred, an American cryptocurrency lender, filed a lawsuit in a California federal court last week against Uphold, claiming the company faces "irreparable harm" due to its inability to withdraw from Uphold's exchange service.
Uphold lawsuit
Cred, a crypto lending startup, is suing Uphold for $1 million, alleging that the digital currency exchange caused its demise. Cred launched in 2018 with the aim of becoming the "Uber of crypto lending." It offered loans to borrowers using their cryptocurrency as collateral. But the startup struggled to find traction and defaulted on its own loans. In May 2019, Cred filed for bankruptcy. Now, Cred's creditors are suing Uphold, alleging that the digital currency exchange failed to properly segregate Cred's funds and allowed Cred to borrow more money than it could repay. "Uphold is disappointed that Cred has chosen to pursue this litigation," said Uphold in a statement. "We will vigorously defend ourselves against these claims." In early 2018, Cred, a crypto lending startup, announced that it had raised $26 million in funding. However, just over a year later, the company has filed for bankruptcy, with its founder and CEO crediting the Uphold exchange for its demise. In a blog post published on the Cred website, Dan Schatt alleges that Uphold "systematically" prevented Cred from withdrawing funds, which led to the company's collapse. Schatt also claims that Uphold owes Cred $6 million. Uphold has denied these allegations, stating that it has always complied with all applicable laws and regulations.
Overview of the Case: What is Uphold?
In late November, crypto lender Cred filed a lawsuit against Uphold, alleging that the exchange had caused its demise. Cred is a platform that allows users to earn interest on their digital assets, similar to a savings account. Uphold is a digital currency exchange and wallet provider. In the lawsuit, Cred alleges that Uphold failed to properly credit user deposits, leading to a loss of confidence in the platform and ultimately its collapse. Cred is seeking damages in excess of $58 million, which represents the total value of user deposits at the time of the platform's collapse. This is a developing story and we will update this blog as more information becomes available.
Overview of the Case: What is Cred?
Cred is a crypto lending platform that allows users to borrow and lend digital assets. The platform uses an ERC20 token called LBA as its native currency. In November 2020, Cred filed for bankruptcy in the US, citing financial difficulties caused by the COVID-19 pandemic. The company blamed the cryptocurrency exchange Uphold for its demise, claiming that Uphold had failed to honor its commitment to provide liquidity to Cred's business. Cred was founded in 2018 by Dan Schatt and Lu Hua. The company's mission was to "bring crypto to the masses" by providing a lending platform that would allow users to earn interest on their digital assets. Cred partnered with Uphold to provide liquidity for its business. However, in November 2020, Cred filed for bankruptcy in the US, citing financial difficulties caused by the COVID-19 pandemic. The company blamed the cryptocurrency exchange Uphold for its demise, claiming that Uphold had failed to honor its commitment to provide liquidity to Cred's business. In its bankruptcy filing, Cred listed assets of $50-$100 million and liabilities of $10-$50 million. The company claimed that it had over 200,
Overview of the Case: Why does Cred blame Uphold for its Demise?
Cred, a failed crypto lender, has blamed the Uphold exchange for its demise in a new lawsuit. The company is accusing Uphold of breach of contract, fraud, and negligent misrepresentation. According to the suit, Cred entered into an agreement with Uphold in 2018 to list its Cred tokens on the Uphold platform. Cred claims that Uphold was supposed to help promote and support the Cred token, but instead, the exchange allowed the token to become "virtually worthless."
The suit alleges that Uphold's actions caused Cred to default on its obligations to its investors, leading to the company's collapse. Cred is seeking damages of $150 million from Uphold. This is not the first time that Cred has been in legal trouble. The company was previously sued by investors who claimed that they were misled about the risks of investing in the company. Cred was forced to refund $12 million of the $26 million it had raised in an ICO. Investors claimed that Cred made many false claims about its products, such as the fact that it had partnered with Visa to offer a crypto card. Cred ultimately said there were no plans to issue a Visa-backed credit card.
Conclusion
Cred, a failed crypto lender, is suing Uphold, an online exchange it used to store customer funds. Cred claims that Uphold's negligence led to the loss of $6 million in customer deposits. This case highlights the risks associated with storing digital assets on exchanges and the need for stronger security measures to protect customers' funds.