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The popular cryptocurrency lending service Cred has announced that it has temporarily suspended all funds inflows and outflows. Without disclosing many details, the platform said itâs cooperating with law enforcement authorities to investigate an incident.
Cred Suspends Deposits And Withdrawals
The United States-based crypto lending platform, which recently announced joining Visaâs fast track program, updated its customers on Twitter regarding the latest troubling developments with a brief message.
âUnfortunately, we are unable to comment further at this time, but we will undertake to provide an update within the next two weeks. During this period, all inflows and outflows of funds will be suspended.â â read the statement.
Staying true to its fashion, the cryptocurrency community lashed out at Cred and its lack of details about whatâs going on. This reaction prompted the lending protocol to comment once again. Firstly, Cred apologized for the concerns and inconveniences it has caused while itâs assessing the âbusiness impact connected with a recent fraudulent incident.â
Furthermore, the post explained that Cred is currently cooperating with law enforcement authorities. However, it provided some reassurances claiming that âno client personal data or account information was compromised.â
Itâs worth noting that Credâs website reads that the platform works with âtrusted security and insurance providers Fireblocks and Lockton to ensure that our customersâ digital assets have enterprise-grade security.â Nevertheless, several community members have questioned the state of their holdings on the platform, as they werenât satisfied with Credâs brief updates.
A Dissolved Partnership Saw This Coming?
Although itâs still unconfirmed if the so-called âincidentâ is indeed a hack, it seems that the issues have been transpiring for a while now. Days before Cred suspended deposits and withdrawals, one of its partners ended its relationship with the lending protocol.
The cryptocurrency wallet and trading platform, Uphold, announced on Sunday that users could no longer link their Uphold wallets to the third-party crypto lending provider Cred.
At the time of this writing, neither Uphold nor Cred have disclosed why their partnership agreement ended.
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