{"id":78013,"date":"2024-05-03T22:32:55","date_gmt":"2024-05-04T02:32:55","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=78013"},"modified":"2024-05-03T22:32:59","modified_gmt":"2024-05-04T02:32:59","slug":"former-cred-execs-face-fraud-charges","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/former-cred-execs-face-fraud-charges\/","title":{"rendered":"Former Cred Execs Face Fraud Charges"},"content":{"rendered":"\n

Three ex-Cred executives were charged with wire fraud and money laundering<\/a> before the company's bankruptcy.<\/p>\n\n\n\n

\"Former
Former Cred Execs Face Fraud Charges<\/figcaption><\/figure>\n\n\n\n

Before the company's bankruptcy filing in November 2020, three former executives of the defunct cryptocurrency lender Cred were allegedly involved in wire fraud and money trafficking, according to indictments.<\/p>\n\n\n\n

\n

\u201cThis prosecution demonstrates our determination to keep our markets free of fraudsters and safe for investors,\u201d<\/p>\nthe United States Attorney\u2019s Office for the Northern District of California wrote in a May 3\u00a0statement.<\/cite><\/blockquote>\n\n\n\n

CCO James Alexander is charged with four counts of wire fraud and money trafficking, whereas former CEO Daniel Schatt and CFO Joseph Podulka are each facing thirteen charges.<\/p>\n\n\n\n

\n

\u201cIt highlights a predatory, deceptive scheme defrauding potential victims of hundreds of millions of dollars of cryptocurrency at market value,\u201d<\/p>\n said IRS Criminal Investigation Acting Special Agent in Charge Mark Mosley.<\/cite><\/blockquote>\n\n\n\n

It was reported that in November 2020, when Cred filed for bankruptcy, a significant number of users took to social media to express their apprehensions and inquire whether “their funds are secure.”<\/p>\n\n\n\n

The three executives, according to the prosecution, misled clients regarding the lending and investment practices of Cred.<\/p>\n\n\n\n

It has been alleged that Cred exclusively participated in “collateralized or guaranteed lending,” that its cryptocurrency holdings<\/a> were “hedged,” and that it adopted an “all-weather approach” to investment in order to safeguard against market volatility.<\/p>\n\n\n\n

On the contrary, the prosecution alleged that Cred was involved in unsecured and unsecured lending.<\/p>\n\n\n\n

Schatt and Podulka made their initial appearance in court on May 2; they are required to return on May 8 to enter a plea. The initial court appearance of Alexander has not yet occurred.<\/p>\n\n\n\n

As the former CEO of crypto lender Alex Mashinsky prepares for his September 2024 sentencing hearing, where he confronts seven felony charges in connection with the firm's collapse in July 2022, these charges are brought to light.<\/p>\n\n\n\n

In the interim, Genesis, an additional cryptocurrency lending company\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> that initiated the bankruptcy process in January 2023, is engaged in efforts to reconcile its outstanding obligations with its creditors. Genesis sold approximately 36 million GBTC shares on April 2, resulting in the generation of $2.1 billion in Bitcoin.<\/p>\n","protected":false},"excerpt":{"rendered":"

Three ex-Cred executives were charged with wire fraud and money laundering before the company’s bankruptcy. Before the company’s bankruptcy filing in November 2020, three former executives of the defunct cryptocurrency lender Cred were allegedly involved in wire fraud and money trafficking, according to indictments. \u201cThis prosecution demonstrates our determination to keep our markets free of […]<\/p>\n","protected":false},"author":36,"featured_media":78015,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[19417,19418],"class_list":["post-78013","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-cred-execs","tag-fraud-charges"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/05\/doj-justice-768x403-1.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/78013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=78013"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/78013\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/78015"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=78013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=78013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=78013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}