A former Cred Inc. executive was ordered to turn over millions of dollars of cash and bitcoins that the bankrupt cryptocurrency platform and its creditors said belong to the business, WSJ Pro Bankruptcy reported. But Cred and its clients and customers learned that it might be a struggle to get all of what they believe they are owed from the former officer, who was said to be making transfers of the company’s bitcoins as recently as last month. Cred’s unsecured creditors committee was awarded an emergency restraining order against James Alexander on Friday after petitioning the U.S. Bankruptcy Court in Wilmington, Del., where the company filed for chapter 11 protection in November. The committee said that, shortly before Alexander was fired by Cred in June, he had another employee transfer about 225 bitcoins to Mr. Alexander’s personal digital wallet, worth about $8.5 million today. Soon after, Alexander, Cred and one of its executives began trading lawsuits in California state court over control of subsidiary Cred Capital and its cryptocurrency. In July, a California judge entered a temporary restraining order restricting Alexander’s use of cryptocurrency that the company alleged he had stolen. Cred has also blamed some of its financial troubles on him.
