The Prosecutor's Office of the Northern District of California has charged three former top managers of the Cred crypto lending platform with conspiracy to launder money and fraud in the amount of $783 million.
According to court documents, Daniel Shutt was the co—owner and CEO of the firm, Joseph Podulka was the finance director, and James Alexander was the commercial director.
Founded by another individual in 2018, Cred issued loans in US dollars secured by cryptocurrencies and accepted deposits in digital assets with the promise of profitability.
According to the prosecution, no later than March 2020, the defendants began to deceive customers by providing false information about credit and investment practices. Despite the collapse of the company, the defendants assured the victims of its solvency.
Shatt and Podulka appeared in court on May 2, 2024. The next hearing in the case is scheduled for May 8. Alexander's trial date has not yet been set.
Recall that in October 2020, Cred reported a loss of funds due to fraud.
In November, the platform began bankruptcy proceedings. In the same month, a court in the United States denied creditors the freezing of Cred assets.