Cred: An open letter to affected users from Uphold’s CEO
Dear Uphold Community,
It is with great dismay that we have witnessed the collapse of Cred LLC (f/k/a Libra Credit LLC) (“Cred”). We are just beginning to understand the losses that Cred customers are likely to suffer. In light of Cred’s announcement on November 8, 2020, we feel it is time to share with the Uphold community our experience of the events of the past couple of weeks, the steps we took to protect our users, and our plans for going forward.
On Friday, October 23 at 11:45am (EDT), Uphold received a query from a journalist looking to corroborate a story about Cred “losing several million in client funds.” At that point, Uphold immediately organized a call with Cred’s senior management to find out what the journalist was referring to and how to best proceed.
Following the call, wherein we learned from Cred that there were indeed financial issues affecting their balance sheet, Uphold (i) blocked deposits into Cred (but not withdrawals from Cred) in order to protect Uphold customers, (ii) terminated Uphold’s relationship with Cred, and (iii) insisted that Cred immediately both inform Government regulators and disclose the matter to its customers. Cred agreed, as demanded.
We at Uphold are deeply sorry for anyone that may lose money through their relationship with Cred, but we assure you that Uphold will work tirelessly to help Uphold’s customers gain satisfactory compensation from Cred, its founders and affiliated companies.
Many Uphold employees and their respective families have invested substantial personal sums into Cred, so management at Uphold shares the pain and stress of Uphold users who, like us, feel betrayed and victimized by Cred.
Given the alleged wrongdoing and apparent lack of disclosure by Cred, Uphold is planning to pursue all appropriate remedies against Cred on its own behalf, with any proceeds Uphold recovers from its direct legal actions against Cred (and its principals and affiliates) first distributed among Uphold customers who have lost money at Cred.
Uphold values its relationships with its customers beyond any mere transaction. We have worked hard to develop a global community, and when that community is harmed, we do not take it lying down. We recognize that some of our users trusted Cred because they trusted Uphold. Since Cred has betrayed that trust, Uphold will fight on the side of our community for redress.