Two former executives of the bankrupt cryptocurrency lender Cred have admitted to wire fraud as part of a plea deal. Daniel Schatt, former CEO, and Joseph Podulka, chief financial officer, are facing up to 20 years in prison for misleading customers with inaccurate information about Cred’s lending practices. The plea agreement reflects that their actions led to losses potentially exceeding $150 million for Cred customers who lost funds after the company filed for bankruptcy. 2024 Department of Justice filings show assets have since rebounded, surpassing $783 million in value, but victims suffered substantial losses due to deceptive lending practices and undisclosed affiliations with a Chinese firm called MoKredit Inc., according to prosecutors. The executives’ actions allegedly misled customers into lending money to the platform despite downplaying the risks associated with their business model.