TechFlow news, May 13 — According to Cointelegraph, Daniel Schatt, former CEO of the now-bankrupt crypto lending platform Cred, and Joseph Podulka, former CFO, pleaded guilty to wire fraud charges in the U.S. District Court for the Northern District of California. Judge William Alsup accepted the plea agreement and scheduled sentencing hearings for August 26.
Under the plea agreement, both defendants admitted to selectively presenting positive information while concealing negative facts to induce users to lend fiat and digital currencies to Cred. Prosecutors recommend 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.
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