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Former Cred executives plead guilty, involved in an encryption fraud amounting to $150 million.
On May 14, the former CEO of the bankrupt encryption lending service platform Cred, Daniel Schatt, and former CFO Joseph Podulka pleaded guilty in a California federal court, admitting to intentionally misleading clients about the company's financial condition and lending operations in 2020, resulting in losses of up to $150 million in Crypto Assets for clients. Judge William Alsup accepted the plea agreement, scheduling a sentencing hearing for August 26, with the two possibly facing up to 72 months and 62 months in prison, respectively. Cred filed for bankruptcy in October 2020, with clients filing over 6,000 claims worth more than $140 million.