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Bankrupt Cryptocurrency Platform Cred Can Proceed With Unit’s Chapter 11 Process

Published by

December 5, 2024
(GMT+2)

A judge overseen the bankruptcy of cryptocurrency platform Cred Inc. denied a request by a former executive to throw out the filing by one of its associates.James Alexander had asked the US Bankruptcy Court in Wilmington, Del., to dismiss the bankruptcy of Cred Capital Inc., saying corporate governance documents indicate that he is its sole director and that he didn’t authorize the chapter 11 filing of that business. Cred has said its financial troubles come from actions taken by Mr. Alexander, who was asked in March to initiate Cred Capital as a way to do bond offerings for corporations and to supervise asset-management procedures.Officials of Cred Inc. said the request to let go of the cred Capital bankruptcy was disastrous by Mr. Alexander to hinder the company’s ability to recover cryptocurrency worth millions of dollars that had been transferred to Cred Capital and with which he has “fraudulently absconded.” They say that a fresh Cred Capital corporate charter, updated in June, gives others the authority to supervise Cred Capital, including filing for bankruptcy.

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