Two former CEOs in the bankruptcy service for bankruptcy of guilt in fraud on the corps connected to the company’s collapse.
The former CEO of CRED Daniel Chat and Financial Director Joseph Podolka admitted fraud on wires as part of a call deal with the prosecutor, According to To a text file on May 13 in the California Provincial Court.
Prior to the provincial judge, William Alsup, acknowledgment of guilt and determined a ruling session on August 26. Wire fraud can carry up to 20 years in prison, $ 250,000 in fines for individuals and $ 500.00 for companies.
Law360 I mentioned This as part of the guilt recognition agreement, Chat and Podolka admitted to provide “positive information selectively [while] Failure to detect negative news “as part of a plan” to urge customers to lend their American currencies and digital currencies to credit. “
According to the Federal Public Prosecutors, a potential sentence of 72 months of chat and up to 62 months to Podolka. Chat and Podolka They were facing 13 charges of wire fraud And money laundering.
Al -Fadl Customer losses more than 150 million dollars
When the credit collapsed and submitted to bankrupt He said In May 2024 the assets were Since climbing to a market value that exceeds 783 million dollars.
In the approval agreement, the defendants agreed that their actions led to losses ranging between 65 million dollars and 150 million dollars for users.
James Alexander, the chief trading officials, was also taken into consideration for fraud in wires and money laundering.
Prosecutors claimed that CRED executives have misled customers about CRED Equipment and investment practices He did not reveal that his loan book relies heavily on the Chinese company Mokredit, which made Microlone not guaranteed for Chinese players.
It is also claimed that CRED claims that he is only involved in the guaranteed lending, and all its investments have been surrounded by encryption, which prosecutors say are wrong.
After the price of bitcoin (BTCHe decreased by 40 % on March 11, 2020, CRE was unable to meet his margin calls and close insolvency, and the three executives sought to obtain new clients while reducing risks, as the general prosecutors claimed.
When CRED announced bankruptcy in November 2020, many users turned into social media Voice concerns and ask If their money is safe.
Related to: The stock exchange refuses to adhere to the failed millions of the credibility of the encryption lender
Other encryption founders faced legal consequences this year. Alex Machinski, founder and former CEO of the Crypto Celsius, He was sentenced to 12 years in prison To defraud May 8.
Meanwhile, the co -founder of Wolf Capital and the head of the merchant Travis Ford He acknowledged that he was guilty on January 10 on charges of conspiring fraud For his role in collecting more than $ 9 million of investors with false promises of high returns.
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