Here's a concise AI-generated summary of the situation:
AI Summary:
Former Cred executives Daniel Schatt (CEO) and Joseph Podulka (CFO) pleaded guilty to wire fraud in a California federal court. They admitted to misleading customers by hiding crucial financial risks, leading to losses between $65 million and $150 million. Despite Cred’s claims of a fully collateralized model, the company depended on unsecured microloans from MoKredit. After a sharp drop in Bitcoin’s value in March 2020, Cred became insolvent and filed for bankruptcy in November 2020. Sentencing is set for August 26, with prosecutors recommending 72 months for Schatt and 62 for Podulka. Some of Cred’s assets have since been revalued at $783 million.
