Cred, a cryptocurrency platform being investigated by the bankruptcy court in Delaware, had a U.K. fugitive as its chief capital officer (CCO).
James Alexander was employed as the CCO of Cred, the crypto lender that filed for bankruptcy in November with liabilities of between $100 million and $500 million.
Alexander had been convicted of crimes relating to illegal money transfers in the U.K. in December 2007 and sentenced to over three years in prison.
According to the court examinerâs report filed Monday (see below), there was a prison break at the facility where Alexander was incarcerated and he was identified by the U.K. government as a fugitive.
The examination describes Alexanderâs âparticipation/involvement in poor decision-makingâ as a ârecurring theme,â and âan important figure in the story of Credâs demise.â
See also: Crypto Crime Siphoned Off Nearly $10.5B in 2020: Research
Alexander is said to have had âfree reignâ to choose how capital was raised and deployed, with scant oversight from Credâs board.
Credâs troubles started in March 2020 when the price of bitcoin crashed to around $3,500, against which the companyâs hedged positions were not insulated, the examiner said.
When CEO Dan Schatt became concerned about how his CCO had arranged Credâs finances, Alexander allegedly transferred over $2.3 million in U.S. dollars and bitcoin to his personal accounts.
See the full report below: