Cred Execs Accused of $783M Fraud

Reading Time: < 1 minute

The US Attorney’s Office for the Northern District of California has brought charges against three former executives of Cred, a crypto lending platform, for their involvement in a conspiracy to commit money laundering and fraud amounting to $783 million.

The three individuals charged were Daniel Shutt, co-owner and CEO of Cred, Joseph Podulka, Chief Financial Officer, and James Alexander, Commercial Director.

The company, founded in 2018 by another individual, offered loans in US dollars secured by cryptocurrencies and accepted deposits in digital assets, promising profitable returns.

However, according to court documents, the defendants began defrauding customers in March 2020 by providing false information about their lending and investment practices.

Despite the company’s subsequent collapse, the defendants continued to assure victims of its solvency. Schatt and Podulka are expected to appear in court on May 2, 2024, and the next hearing in the case is scheduled for May 8.