Daniel Schatt and Joseph Podulka, former executives at the crypto lender Cred Inc., pleaded guilty in federal court to charges of wire fraud conspiracy, admitting they misled customers about the company's financial status. The fraud resulted in losses totaling around $150 million for customers when Cred collapsed after a significant drop in Bitcoin prices in March 2020 and a subsequent liquidity crisis. The executives presented a misleadingly positive image of the company, selectively sharing positive news while hiding negative developments to encourage customer deposits. Cred filed for bankruptcy in October 2020, resulting in over 6,000 claims from customers worth more than $140 million. Prosecutors have recommended sentences of 72 months for Schatt and 62 months for Podulka, with sentencing scheduled for August 26, 2025.

Source 🔗