It has been clearly noted that Crypto Lender Cred will be in control of the business in spite of the fact that it is now head for bankruptcy. In the preliminary hearing that happened, the Delaware Bankruptcy Court Judge John Dorsey clearly rejected the motion of appointing the Chapter 11 trustee. Chapter 11 trustee aimed at overseeing the restricting of the Cred which the judge denied already. Besides, there was also a ruling that judge passed with a caveat stating that if the Cred equity holders Lu Hua and Dan Schatt tries to fire the board member Cred Grant Lyon who is holding the charge of Cred’s restructuring but a court will interfere and hire a trustee to look after the whole process of the bankruptcy.

Judge John Dorsey had also hired an examiner who shall be offering the whole investigation that actually has been done on the business of the Cred. Even if there is no evidence that anybody has done anything wrong post-bankruptcy, but there are still many that think that debtors did pre-petition. No one actually considers the fact that the company actually was running the business pretty well. The deposits and withdrawals are also frozen by Cred in October while announcing its bankruptcy in Movement. As per the former cred employees, the Chapter 11 bankruptcy filing of the company cannot reveal the entire details.

There has also been a motion filed for appointing the Chapter 11 trustee by the U.S. Department of Justice (DOJ) unit. They shall be looking after the whole bankruptcy case administration. While denying the request of the DOJ, Dorsey also offers some views on the mismanage of the cred. There is surely no denial of the act there have been shenanigans going on even before the case of bankruptcy that was filed. Besides, the decision of motion delay has been passed by the judge to let one creditor at least retrieve the crypto before all.

Shivangi Mujumdar

CBW - External Analyst

INDIA