Cred Executives Plead Guilty to Misleading Customers in Major Crypto Scandal

COINOTAG News, May 14th – In a significant development in the cryptocurrency sector, Daniel Schatt, the ex-CEO of the failed lending platform Cred, alongside former CFO Joseph Podulka, has accepted guilty pleas in a California District Court. The duo acknowledged that they deliberately misled customers regarding the financial stability of Cred during 2020, which directly contributed to losses of approximately $150 million in various cryptocurrencies. Judge William Alsup has endorsed their plea agreement, leading to a sentencing hearing on August 26th. Schatt may face up to 72 months in prison, while Podulka could receive a sentence of 62 months. Cred sought bankruptcy protection in October 2020, facing over 6,000 claims from customers, amounting to more than $140 million. This case highlights the importance of regulatory compliance in the rapidly evolving crypto landscape.