Bankrupt Crypto Lending Platform Cred Had UK Fugitive in Charge of Funds

·1 min read

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.

Related: Will Bitcoin Crash? Not Below $48K, Blockchain Data Suggests

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.”

See also: Crypto Crime Siphoned Off Nearly $10.5B in 2020: Research

Alexander is said to have had “free reign” to choose how capital was raised and deployed, with scant oversight from Cred’s board.

Related: Grayscale Halts New Investments in GBTC After Trading at 15% Below Bitcoin

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:

Related Stories