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…

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