DeFi Startup Earnity Accused of IP Fraud in Cred Bankruptcy

DeFi Startup Earnity Accused of IP Fraud in Cred Bankruptcy
Decentralized finance (DeFi) startup Earnity has been pulled into the ongoing legal case of crypto lending platform Cred, which filed for bankruptcy in November 2020 with up to $500 million in liabilities. A new court motion accuses Earnity of hiding its ties to Cred in order to steal intellectual property.In a motion to compel filed last week with the U.S. Bankruptcy Court for the District of Delaware, the trust acting in the interest of Cred lenders said that former Cred executives “secretly conspired” to form Earnity. The new DeFi company, under its beneficial owner Dominic Carosa, then purchased Cred’s electronics,…