Wire fraud and money laundering charges brought against former executives of Cred

Three individuals who formerly held executive positions at Cred, a bankrupt cryptocurrency lender, have been indicted on charges of wire fraud and money laundering. The charges were brought against former CEO Daniel Schatt, former CFO Joseph Podulka, and former CCO James Alexander. The United States Attorney’s Office for the Northern District of California stated that this prosecution serves as a demonstration of their commitment to maintaining fraud-free markets for investors. Mark Mosley, the acting special agent in charge of criminal investigation at the U.S. Internal Revenue Service, described the alleged scheme as predatory and deceptive, resulting in the defrauding of potential victims of hundreds of millions of dollars worth of cryptocurrency. When Cred declared bankruptcy in November 2020, users expressed concerns on social media about the safety of their funds. Prosecutors claim that the executives misled customers about Cred’s lending and investment practices. The charges against the executives are still pending, and their next court appearances are scheduled for May 8. In related news, Genesis, another crypto lending firm that filed for bankruptcy in January 2023, is currently working on settling its debts with creditors.