Two former executives of the bankrupt cryptocurrency lending platform Cred pleaded guilty to wire fraud charges in a California federal court. Daniel Schatt, the former CEO, and Joseph Podulka, the former CFO, admitted that they misled customers by selectively disclosing information, resulting in losses potentially amounting from $65 million to $150 million. Sentencing is scheduled for August 26th, with prosecutors seeking lengthy prison terms: 72 months for Schatt and 62 months for Podulka. Following a 40% drop in Bitcoin’s value in March 2020, Cred faced bankruptcy due to unmet margin requirements, yet executives continued to conceal risks from new customers. Investigations revealed that the platform relied on unsecured microloans from MoKredit, contradicting its claims of a fully collateralized lending model. When Cred declared bankruptcy in November 2020, customer losses exceeded $150 million, although some assets have since been revalued at $783 million.