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The management of the Cred crypto-lender has been charged with fraud

Bits.media / 05.05.2024 / 09:38
The management of the Cred crypto-lender has been charged with fraud
The prosecutor's Office of the Northern District of California has filed charges against three former top managers of the crypto-credit company Cred. According to investigators, officials participated in a conspiracy to defraud and launder customer funds.

Daniel Schatt, Joseph Podulka and James Alexander, according to the investigation, caused losses to clients in the amount of $ 780 million. The defendants deliberately misled clients by providing false information about the crypto-lender's investment programs, the prosecutor's office insists.

Daniel Shutt was the co—owner and chief executive Officer of Cred, Joseph Podulka was the CFO, and James Alexander was the head of the company's commercial department. After the bankruptcy procedure began in the spring of 2020, the team continued to convince investors that Cred is a solvent organization. However, the company's loan programs were not secured by collateral or financial guarantees, law enforcement officers insist.

Previously, he was the co-founder of BTC-e, the largest Russian-language cryptocurrency exchange at the time Alexander Vinnik made a deal with the American prosecutor's office, pleading guilty to laundering $ 9 billion using cryptocurrencies.

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