Online reports, Cointelegraph reported that Daniel Schatt and CFO Joseph Podulka, former CEO of bankrupt crypto lending platform Cred, pleaded guilty to wire fraud charges in California federal court. Under the plea agreement, the two men pleaded guilty to inducing customers to lend money through selective disclosure of information, resulting in losses to users of $65 million to $150 million. The judge plans to sentence the sentence on August 26, and the prosecution recommends sentences of 72 months and 62 months respectively. After Bitcoin plunged 40% in March 2020, Cred was on the verge of bankruptcy due to its inability to meet margin requirements, but executives still hid risks from new customers. Surveys show that the platform actually relies on MoKredit's unsecured microfinance business, which is inconsistent with its claimed "full mortgage lending" model. When Cred went bankrupt in November 2020, customer losses exceeded US$150 million, but some assets have now been valued at US$783 million.