As crypto lending app Cred suspends withdrawals, Uphold terminates its contract

Crypto lending app Cred purged its services earlier this week amidst allegations of fraud coming to light.

The issue was first identified on October 29 after Cred noted the company was investigating a "Recent fraudulent incident" and liaising with law enforcement authorities.

Cred is cooperating with law enforcement authorities to investigate the incident.

The platform allows users to link their wallets to third-party apps such as Cred to enable the purchase and sale of cryptocurrencies.

"We arranged a call with Cred straightaway and were not sufficiently reassured by their answers, or the clarity they were able to provide. The extent of any problem at Cred was not, and is not, clear to us," an Uphold spokesperson told CryptoSlate.

"We acted immediately out of an abundance of caution to protect our customers by closing down all outgoing links into Cred and ending our relationship with the company. We can't say more because we don't have the information. Cred is investigating the matter."

Uphold is one of many wallets to offer an integration with Cred.

A spokesperson from Cred told CryptoSlate that the crypto service was still in the process of assessing the business impact of a fraud incident in consultation with its Counsel and specialists.

Cred told CryptoSlate that concerns and rumors about Cred being hacked were fabricated.

"No Cred systems, customer accounts, or customer information have been compromised," a spokesperson stated in a mail to us.