Former executives of Cred plead guilty, user losses reach as high as $150 million.

According to Gate.io News bot and a report by Cointelegraph, former CEO Daniel Schatt and former CFO Joseph Podulka of the encryption lending service platform Cred have pleaded guilty to wire fraud in a California district court. During their tenure, the two concealed the company’s financial difficulties and misled customers into investing, resulting in user losses ranging from $65 million to $150 million.

Judge William Alsup has accepted a plea agreement and scheduled a sentencing hearing for August 26. According to the agreement, Schatt and Podulka face a maximum of 72 months and 62 months of imprisonment, respectively. Cred filed for bankruptcy in November 2020, ultimately resulting in user losses of up to $150 million.