Two former officials of the bankruptcy Crypto Lending Service Credit have convicted the company’s collapse for wire fraud.
Former Credit CEO Daniel Scatt and Chief Financial Officer Joseph Podulka admitted wire fraud as part of a petition with prosecutors, According Text filing on 13 May in California district court.
District Judge William Alsup accepted the petition deals and sentenced a sentence for 26 August. Wire fraud can be taken up to $ 250,000 for jails up to 20 years in jail and $ 500,00 for businesses.
Law360 Informed As part of the plea agreement, Scatt and Podulaka selectively failed to reveal negative news to motivate customers to motivate their American currency and digital currencies “.”
Federal prosecutors have allegedly presented a potential punishment range of up to 72 months for Skat and a possible punishment range of up to 62 months for Podulka. Scatt and podulka Wire was facing 13 allegations of fraud And money laundering.
Credit customer loss is more than $ 150 million
When the credit collapsed and filed for bankruptcy, its customers suffered a loss of up to $ 150 million, but US justice department Said The property was in May 2024 Since a market price climbed $ 783 million.
In the argument agreement, the defendants agreed that their actions caused losses between $ 65 million and $ 150 million for users.
Former credit chief commercial officer James Alexander was also killed from allegations of wire fraud and money laundering.
Prosecutors alleged that CRD officials misled customers about CRED Borrowing and investment practices And it did not disclose that its debt book was very much dependent on the Chinese firm Mokredit, which made Chinese gamers unsafe microlone.
Credit had allegedly claimed to be engaged in giving only collateral loans, and all its crypto investments were hedge, which prosecutors say it was false.
After the price of bitcoin (BTCProsecutors claimed that on March 11, 2020, on March 11, 2020 declined by 40%,
When Credit declared bankruptcy in November 2020, many users turned to social media Worry about voice and ask If their funds were safe.
Connected: Crypto lender denies millions of outstanding to fail in credit
Other crypto founders have also faced legal consequences this year. Alex Mashesky, Bankruptcy Crypto Lending Platform Cellsius founder and former CEO, 12 -year -old jail was sentenced For fraud on 8 May.
Meanwhile, Wolf Capital co-founder and head trader Trader Ford Wire fraud conspiracy convicted on January 10 For his role in increasing more than $ 9 million from investors with false promises of high returns.
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