Former CEO and CFO of the cryptocurrency lending platform Cred admit to telecom fraud

ChainCatcher news, according to Cointelegraph, the former CEO of the bankrupt crypto lending service platform Cred, Daniel Schatt, and former CFO Joseph Podulka have pleaded guilty to telecommunications fraud in a California district court. Judge William Alsup accepted the plea agreement and scheduled the sentencing hearing for August 26.

According to the plea agreement, the two defendants admitted to selectively presenting positive information while concealing negative news to induce users to lend fiat and digital currencies to Cred. The prosecution recommended a maximum sentence of 72 months in prison for Schatt and 62 months for Podulka.

Cred filed for bankruptcy in November 2020, resulting in user losses of up to $150 million.