Executives of Bankrupt Cryptocurrency Company Arrested
An investigation has been launched against the executives of the bankrupt cryptocurrency company Cred.
The USA opened an investigation against Cred's former CEO Daniel Schatt, former CFO Joseph Podulka and former CCO James Alexander for alleged fraud.
Schatt and Podulka were arrested and went on trial last day.
Cred filed for bankruptcy in November 2020. The company announced at the time that its liabilities were between $100 and $500 million, but that it had less than $100 million in assets on its balance sheet.
In the statement made by the US Department of Justice, “Despite the defendants' promises, Cred provided loans that were neither collateralized nor guaranteed. Additionally, Cred's hedging strategy did not protect the company's investments against volatility.” It was said.
Shares are for informational purposes only and are not investment advice.
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