Former CEO and CFO of crypto lending platform Cred plead guilty to wire fraud

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MarsBit
05-14
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Mars Finance News: According to Cointelegraph, the former CEO of the bankrupt crypto lending service platform Cred, Daniel Schatt, and former CFO Joseph Podulka have admitted to telecommunications fraud in the California District Court. Judge William Alsup accepted the plea agreement and scheduled the sentencing hearing for August 26. Under the plea agreement, both defendants admitted to selectively presenting positive information while concealing negative news to induce users to lend fiat and digital currencies to Cred. The prosecution suggested that Schatt could face up to 72 months in prison, and Podulka up to 62 months. Cred filed for bankruptcy in November 2020, causing user losses of up to $150 million.

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