“Grave dereliction” by Cred Inc.'s former management contributed to the cryptocurrency company’s bankruptcy, according to an independent examiner’s report addressing fraud allegations.
The San Mateo, Calif.-based company didn’t maintain regular records or track customer’s assets, which it commingled with other deposits, according to the report filed Monday with the U.S. Bankruptcy Court for the District of Delaware. It also didn’t have regular practices to ward off risks inherent in cryptocurrency investment, the report said.
Cred’s “failures in the most basic of business functions portended its eventual demise,” examiner Robert Robert J. Stark said. The company didn’t reconcile its finances for ...
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