Former execs of crypto lender Cred cop to wire fraud

Quick Summary:

Source: PACERLaw360 reported that as part of the plea agreement, Schatt and Podulka admitted to selectively presenting positive “information [while] failing to disclose negative news” as part of a plan to “induce customers to lend their US currency and digital currencies to Cred.”Federal prosecutors have reportedly submitted a possible sentence range of up to 72 months for Schatt and up to 62 months for Podulka.

Former Cred CEO Daniel Schatt and chief financial officer Joseph Podulka admitted to wire fraud as part of a plea deal with prosecutors, according to a May 13 text filing in a California District Court.

After the price of Bitcoin (BTC) dropped by 40% on March 11, 2020, Cred could not meet its margin calls and neared insolvency, and the three executives sought out new customers while downplaying the risks, prosecutors claimed. When Cred declared bankruptcy in November 2020, numerous users turned to social media to voice concerns and ask if their funds were safe.

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Article Details

Author / Journalist: Cointelegraph by Stephen Katte

Category: Crypto

Markets: United States

Topics: Plea Million Schatt Part Cred Wire Fraud Prosecutors Podulka Crypto Customers

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-05-14 @ 07:32:45 (13 hours ago)

News Timezone: GMT -5:00

News Source URL: cointelegraph.com

Language: English

Article Length: 499 words

Reading Time: 3 minutes read

Sentences: 20 lines

Sentence Length: 25 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Coin Telegraph

News ID: 28703500

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