[ad_1]
Crypto exchange Uphold has denied owing approximately $784 million to a liquidation trust for failed crypto investment platform Credo.
At court on January 11, Uphold moved to dismiss all counts of action filed against Cred in June 2022.
Cred was a cryptocurrency lending service that filed for Chapter 11 bankruptcy in November 2020. In June 2022, Cred’s liquidation trust filed an adversarial complaint against Uphold and two of his affiliates.
Uphold claimed to have worked with the Cred co-founder to promote CredEarn and owes cryptocurrency lenders $783.9 million.
According to the lawsuit, Cred alleges that Uphold worked with Cred’s co-founders to promote CredEarn, and that crypto investments channeled from Uphold during the peak of the market were worth more than $700 million. .
The product promised high yields and attracted retail investors, but Cred’s investments took a turn for the worse, leading to client losses and bankruptcy filing in November 2020. Cred’s bankruptcy case is similar to those of Celsius Network and Voyager Digital.
Additionally, according to Law360, Uphold “helped and abetted Cred co-founders Daniel Schatt and Lu Hua, and other key Cred officers, in their breach of fiduciary duty claims in connection with the CredEarn program.” claim.
The complaint also alleges that Uphold was aware that Cred “has engaged in highly risky hedging strategies and that there are regulatory risks associated with cryptocurrency yield-earning programs.”
But in a move to dismiss the lawsuit, Uphold called the Cred Trust’s claims “incoherent, conclusive and conspiratorial,” and asked the Delaware bankruptcy court to dismiss them.
Baker & Hostetler’s Zachary Taylor, an attorney for Uphold, told the court that “the only thing we can trust is unsubstantiated speculation,” adding, “It doesn’t make sense.”
Uphold denied that it was aware of Cred’s risks and claimed that Cred was owned and operated entirely independently. It also claimed that CredEarn was unaware of CredEarn’s financial problems when he promoted the product to his Uphold customers.
The motion also argued that it had nothing to do with Cred’s bankruptcy.
CredEarn reads, “It is independently owned, managed and operated by Cred, and it was internal malfeasance and mismanagement that led to Cred’s downfall.”
Related: Uphold to become UK registered crypto firm after FCA approval
At the hearing, Cred Trust attorney Joseph B. Evans of McDermott Will & Emery said that “the insider’s claims related to working with Uphold have been resolved on a case-by-case basis.”
Bankruptcy Judge John T. Dorsey said he would like to see the settlement agreement because the court took the matter under its advice.
Uphold is a global multi-asset digital trading platform that claims to have over 10 million users in 150 countries. We offer trading services for crypto assets, fiat currencies, stocks and precious metals.
[ad_2]
Source link
