Cred Executives Charged with $783 Million Fraud

The Northern District of California’s prosecutor has charged three former top executives of the crypto lending platform Cred with conspiracy to commit money laundering and fraud amounting to $783 million.

According to court documents, Daniel Schatt was a co-owner and CEO of the firm, Joseph Podulka served as the Chief Financial Officer, and James Alexander was the Chief Commercial Officer.

Founded by another individual in 2018, Cred provided loans in US dollars secured by cryptocurrency and accepted deposits in digital assets with promises of returns.

The indictment alleges that by March 2020, the defendants began deceiving clients by providing false information about the company’s lending and investment practices. Despite the company’s collapse, the accused assured victims of its solvency.

Schatt and Podulka appeared in court on May 2, 2024. The next hearing is scheduled for May 8. A court date for Alexander has not yet been set.

In October 2020, Cred reported a loss of funds due to fraud.

In November, the platform initiated bankruptcy proceedings. That same month, a US court denied creditors’ request to freeze Cred’s assets.