Cryptocurrency News

Cred Inc Has Appointed A Jail Escaped Person As Its CFO.

Renowned cryptocurrency lending platform Cred Inc has unwittingly appointed a jail escaped person as to its CFO [Chief Finance Officer].

In line with an official report on 8th March, filed by examiner Robert Stark of Brown Rudnick LLP asserts that former Cred CFO James Alexander has been identified by United Kingdom authorities as a financial fugitive who had been sentenced to over 3  years imprisonment in December 2007. Stark added:

“At the time of his incarceration, there was a jailbreak at this facility. Mr. Alexander has been identified by the United Kingdom government as a fugitive.”

Stark was appointed by Judge John Dorsey earlier in December to research allegations from Cred’s users that the firm had lost $66 Mln in less than two years through fraud & incompetence.

The report found Cred’s accounting & compliance practices to be “un-systemic, chaotic and, in some instances, nonexistent,” noting a scarcity of standardized reporting and tracking processes, additionally to blatant comingling of users and company funds.

“By the time Cred filed for bankruptcy, it had not performed a comprehensive financial reconciliation of accounts in almost a year,” he explained, adding:

“Cred, it seems, excelled at its marketing objectives; but, its failures within the most elementary of business functions portended its eventual demise.”

Alexander has been in the middle of Cred’s bankruptcy proceedings since they were filed earlier in November, with the firm’s lawyers accusing him of seeking to require over its subsidiary, Cred Capital. They accuse Alexander of transferring $4.3 Mln of the firm’s cryptocurrency to accounts under his management and losing an additional $11.5 Mln in virtual assets to a scam.

The accused filed to dismiss Cred Capital’s bankruptcy filing, claiming he was its director and therefore the sole individual able to authorize the filing. The motion was dismissed earlier this month.

Earlier last month, Alexander’s lawyers shifted to withdraw from the case, asserting the defendant is badly holding cryptocurrencies they need repeatedly instructed him to show over to authorities.

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