Case summary
What happened
Cred accepted cryptocurrency through CredEarn and offered crypto-backed borrowing through CredBorrow. Financial stress and undisclosed business problems preceded a late-October 2020 account halt and a 7 November 2020 Chapter 11 filing. A liquidation plan became effective on 19 April 2021. Former executives later pleaded guilty to wire-fraud conspiracy and were sentenced in August 2025. No reviewed source establishes one completed recovery percentage for every customer class.
Customer result
Customer outcome
Claims ongoing
The liquidation plan became effective on 19 April 2021, but that milestone does not establish completed distributions. Criminal sentences and valuation estimates do not determine bankruptcy recoveries.
- Estimated recovery
- No final universal recovery rate is established for all Cred customer and creditor classes.
- Repayment started
- —
- Repayment completed
- —
- Confidence
- High
Asset treatment
Terms risk
Platform-owned
Platform-owned classification reflects the reviewed business model and bankruptcy treatment, not one guaranteed priority or recovery rate for every claim.
- Affected product
- CredEarn and related customer balances
- Confidence
- High
Cred accepted customer cryptocurrency and deployed it through company lending and hedging arrangements; customer balances entered the Chapter 11 claim process.
Known unknowns
Uncertainty
The 2018 launch date is approximate. Plan effectiveness is not repayment completion, and final recovery varies by claim class.
Chronology
Historical record
Cred begins operating
Cred developed crypto-backed borrowing and cryptocurrency yield products for customers.
Launch year is approximate.
Cred suspends customer inflows and outflows
Cred paused customer fund inflows and outflows while investigating financial irregularities and loss of funds.
Contemporaneous reporting described both inflows and outflows as suspended.
Cred files Chapter 11 cases
Cred Inc. and related entities filed Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware.
The filing moved customer balances into a court-supervised liquidation process.
Court confirms Cred liquidation plan
The bankruptcy court confirmed Cred's modified first amended combined plan of liquidation and disclosure statement.
Plan confirmation did not establish completed creditor repayment.
Cred liquidation plan becomes effective
Cred's confirmed liquidation plan became effective and the liquidation trust process proceeded under the plan.
Plan effectiveness is an administrative milestone, not a universal recovery-completion date.
Former Cred CEO and CFO sentenced
Former Cred executives Daniel Schatt and Joseph Podulka were sentenced to federal prison after pleading guilty to wire-fraud conspiracy involving misleading representations to Cred customers.
The criminal sentences concern individual conduct and do not by themselves determine bankruptcy recoveries.
Source record
Evidence dossier
Filter by claim, reliability, source type, and whether evidence is linked to a specific event.
customer outcome
1 sourcesNotice of effective date of Cred liquidation plan
U.S. Bankruptcy Court for the District of Delaware via claims agent · 2021-04-19
The effective date is not a universal distribution-completion date.
Event
4 sourcesCred Inc. bankruptcy information center
Cred Inc. claims and noticing agent · 2020-11-07
Official case portal for the Chapter 11 proceedings.
Order confirming Cred liquidation plan
U.S. Bankruptcy Court for the District of Delaware via claims agent · 2021-03-11
Official portal identifies the confirmation order date.
Cred criminal case and victim information
U.S. Attorney's Office, Northern District of California · 2024-05-01
Official case page identifies Cred customers and investors as affected parties.
Cred confirms suspension of fund inflows and outflows
Cointelegraph · 2020-10-29
Contemporaneous report reproducing Cred's statement that CredEarn inflows and outflows were suspended.
failure reason
1 sourcesFormer Cred executives sentenced
U.S. Attorney's Office, Northern District of California · 2025-08-29
Primary source for the guilty pleas, sentences and misleading customer representations.
url history
1 sourcesCred website archive captures
Internet Archive
Historical captures support the Cred and CredEarn platform identity.
No evidence records match the current filters.
Comparative records