Former Cred Executive Pleads Guilty, Implicated in $150 Million Crypto Fraud

BlockBeats News, May 14th - Former CEO of the bankrupted crypto lending service platform Cred, Daniel Schatt, and former CFO Joseph Podulka pleaded guilty in California District Court, admitting to intentionally misleading customers in 2020 about the company's financial condition and loan operations, resulting in customers losing up to $150 million in cryptocurrency.

Judge William Alsup accepted the plea agreement, and a sentencing hearing is scheduled for August 26th, where the two individuals may face up to 72 months and 62 months of imprisonment, respectively. Cred filed for bankruptcy in October 2020, with over 6,000 claims from customers totaling more than $140 million.