Bankrupt Crypto Lending Platform Cred Had UK Fugitive in Charge of Funds
Cred, a cryptocurrency platform being investigated by the bankruptcy court in Delaware, had a U.K. fugitive as its chief capital officer (CCO).
James Alexander was employed as the CCO of Cred, the crypto lender that filed for bankruptcy in November with liabilities of between $100 million and $500 million.
Alexander had been convicted of crimes relating to illegal money transfers in the U.K. in December 2007 and sentenced to over three years in prison.
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According to the court examiner’s report filed Monday (see below), there was a prison break at the facility where Alexander was incarcerated and he was identified by the U.K. government as a fugitive.
The examination describes Alexander’s “participation/involvement in poor decision-making” as a “recurring theme,” and “an important figure in the story of Cred’s demise.”
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Alexander is said to have had “free reign” to choose how capital was raised and deployed, with scant oversight from Cred’s board.
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Cred’s troubles started in March 2020 when the price of bitcoin crashed to around $3,500, against which the company’s hedged positions were not insulated, the examiner said.
When CEO Dan Schatt became concerned about how his CCO had arranged Cred’s finances, Alexander allegedly transferred over $2.3 million in U.S. dollars and bitcoin to his personal accounts.
See the full report below:
