Three former executives of Cred, a bankrupt crypto lender, were charged on Thursday with conspiracy to commit wire fraud, wire fraud, and participating in illicit financial transactions.
The US Attorney’s Office in the Northern District of California indicted Daniel Schatt, Joseph Podulka, and James Alexander, with Schatt and Podulka being arrested and appearing in court in San Francisco earlier that same day.
Cred declared bankruptcy in November 2020, estimating its liabilities to be between $100 million and $500 million, while reporting less than $100 million in assets.
The company attributed its collapse to “irregularities” in handling specific corporate funds. In a later development, a federal judge approved Cred’s reorganization plan, as recorded in court documents.
Cred was one of the first high-profile crypto lender bankruptcies and preceded those of Celsius and Voyager in 2022 by about two years.
