Crypto Company Cred Approved to Seek Votes on Liquidation Plan

Cred Inc., a cryptocurrency services company, won bankruptcy court permission to solicit votes on its Chapter 11 liquidation plan that would create a trust to pay back unsecured creditors.

Unsecured creditors hold $162.8 million in claims, according to court filings. But the combined plan and disclosure statement, approved Thursday solely for vote solicitation purposes, doesn’t provide an estimate on how much those creditors could expect to recover.

Creditors would share from funds managed and collected by a liquidating trust funded by Cred’s assets, which include crypotcurrency, cash, and litigation claims against third parties, Cred’s attorney, James T. Grogan of ...