Two former executives of the bankrupt crypto lending service Cred have pleaded guilty to wire fraud connected to the company’s collapse.

Former Cred CEO Daniel Schatt and chief financial officer Joseph Podulka admitted to wire fraud as part of a plea deal with prosecutors, according to a May 13 text filing in a California District Court.

District Judge William Alsup accepted the plea deals and set a sentencing hearing for Aug. 26. Wire fraud can carry up to 20 years in prison and $250,000 in fines for individuals and $500,00 for businesses.

After accepting the defendant’s guilty plea, Judge William Alsup set a sentencing hearing for August. Source: PACER

Law360 reported that as part of the plea agreement, Schatt and Podulka admitted to selectively presenting positive “information [while] failing to disclose negative news” as part of a plan to “induce customers to lend their US currency and digital currencies to Cred.”

Federal prosecutors have reportedly submitted a possible sentence range of up to 72 months for Schatt and up to 62 months for Podulka. Schatt and Podulka were facing 13 charges of wire fraud and money laundering.

Cred customer losses exceed $150 million 

When Cred collapsed and filed for bankruptcy, its customers suffered losses of up to $150 million, but the US Department of Justice said in May 2024 that the assets had since climbed to a market value exceeding $783 million.

In the plea agreement, the defendants agreed that their actions led to losses of between $65 million and $150 million for users.

Former Cred chief commercial officer James Alexander was also hit with wire fraud and money laundering charges.

Prosecutors alleged that the Cred executives misled customers about Cred’s lending and investment practices and didn’t disclose that its loan book relied heavily on the Chinese firm MoKredit, which made unsecured microloans to Chinese gamers.

Cred also allegedly claimed to only engage in collateralized lending, and all its crypto investments were hedged, which prosecutors say was false.

After the price of Bitcoin (BTC) dropped by 40% on March 11, 2020, Cred could not meet its margin calls and neared insolvency, and the three executives sought out new customers while downplaying the risks, prosecutors claimed. 

When Cred declared bankruptcy in November 2020, numerous users turned to social media to voice concerns and ask if their funds were safe.

Related: Uphold exchange denies owing millions to failed crypto lender Cred

Other crypto founders have also faced legal consequences this year. Alex Mashinsky, the founder and former CEO of bankrupt crypto lending platform Celsius, was sentenced to 12 years in prison for fraud on May 8.

Meanwhile, Wolf Capital co-founder and head trader Travis Ford pleaded guilty on Jan. 10 to wire fraud conspiracy charges for his role in raising over $9 million from investors with false promises of high returns.

Magazine: ChatGPT a ‘schizophrenia-seeking missile,’ AI scientists prep for 50% deaths: AI Eye

Two former executives of the bankrupt crypto lending service Cred have pleaded guilty to wire fraud connected to the company’s collapse.

Former Cred CEO Daniel Schatt and chief financial officer Joseph Podulka admitted to wire fraud as part of a plea deal with prosecutors, according to a May 13 text filing in a California District Court.

District Judge William Alsup accepted the plea deals and set a sentencing hearing for Aug. 26. Wire fraud can carry up to 20 years in prison and $250,000 in fines for individuals and $500,00 for businesses.

After accepting the defendant’s guilty plea, Judge William Alsup set a sentencing hearing for August. Source: PACER

Law360 reported that as part of the plea agreement, Schatt and Podulka admitted to selectively presenting positive “information [while] failing to disclose negative news” as part of a plan to “induce customers to lend their US currency and digital currencies to Cred.”

Federal prosecutors have reportedly submitted a possible sentence range of up to 72 months for Schatt and up to 62 months for Podulka. Schatt and Podulka were facing 13 charges of wire fraud and money laundering.

Cred customer losses exceed $150 million 

When Cred collapsed and filed for bankruptcy, its customers suffered losses of up to $150 million, but the US Department of Justice said in May 2024 that the assets had since climbed to a market value exceeding $783 million.

In the plea agreement, the defendants agreed that their actions led to losses of between $65 million and $150 million for users.

Former Cred chief commercial officer James Alexander was also hit with wire fraud and money laundering charges.

Prosecutors alleged that the Cred executives misled customers about Cred’s lending and investment practices and didn’t disclose that its loan book relied heavily on the Chinese firm MoKredit, which made unsecured microloans to Chinese gamers.

Cred also allegedly claimed to only engage in collateralized lending, and all its crypto investments were hedged, which prosecutors say was false.

After the price of Bitcoin (BTC) dropped by 40% on March 11, 2020, Cred could not meet its margin calls and neared insolvency, and the three executives sought out new customers while downplaying the risks, prosecutors claimed. 

When Cred declared bankruptcy in November 2020, numerous users turned to social media to voice concerns and ask if their funds were safe.

Related: Uphold exchange denies owing millions to failed crypto lender Cred

Other crypto founders have also faced legal consequences this year. Alex Mashinsky, the founder and former CEO of bankrupt crypto lending platform Celsius, was sentenced to 12 years in prison for fraud on May 8.

Meanwhile, Wolf Capital co-founder and head trader Travis Ford pleaded guilty on Jan. 10 to wire fraud conspiracy charges for his role in raising over $9 million from investors with false promises of high returns.

Magazine: ChatGPT a ‘schizophrenia-seeking missile,’ AI scientists prep for 50% deaths: AI Eye

Two former executives of the bankrupt crypto lending service Cred have pleaded guilty to wire fraud connected to the company’s collapse.

Former Cred CEO Daniel Schatt and chief financial officer Joseph Podulka admitted to wire fraud as part of a plea deal with prosecutors, according to a May 13 text filing in a California District Court.

District Judge William Alsup accepted the plea deals and set a sentencing hearing for Aug. 26. Wire fraud can carry up to 20 years in prison and $250,000 in fines for individuals and $500,00 for businesses.

After accepting the defendant’s guilty plea, Judge William Alsup set a sentencing hearing for August. Source: PACER

Law360 reported that as part of the plea agreement, Schatt and Podulka admitted to selectively presenting positive “information [while] failing to disclose negative news” as part of a plan to “induce customers to lend their US currency and digital currencies to Cred.”

Federal prosecutors have reportedly submitted a possible sentence range of up to 72 months for Schatt and up to 62 months for Podulka. Schatt and Podulka were facing 13 charges of wire fraud and money laundering.

Cred customer losses exceed $150 million 

When Cred collapsed and filed for bankruptcy, its customers suffered losses of up to $150 million, but the US Department of Justice said in May 2024 that the assets had since climbed to a market value exceeding $783 million.

In the plea agreement, the defendants agreed that their actions led to losses of between $65 million and $150 million for users.

Former Cred chief commercial officer James Alexander was also hit with wire fraud and money laundering charges.

Prosecutors alleged that the Cred executives misled customers about Cred’s lending and investment practices and didn’t disclose that its loan book relied heavily on the Chinese firm MoKredit, which made unsecured microloans to Chinese gamers.

Cred also allegedly claimed to only engage in collateralized lending, and all its crypto investments were hedged, which prosecutors say was false.

After the price of Bitcoin (BTC) dropped by 40% on March 11, 2020, Cred could not meet its margin calls and neared insolvency, and the three executives sought out new customers while downplaying the risks, prosecutors claimed. 

When Cred declared bankruptcy in November 2020, numerous users turned to social media to voice concerns and ask if their funds were safe.

Related: Uphold exchange denies owing millions to failed crypto lender Cred

Other crypto founders have also faced legal consequences this year. Alex Mashinsky, the founder and former CEO of bankrupt crypto lending platform Celsius, was sentenced to 12 years in prison for fraud on May 8.

Meanwhile, Wolf Capital co-founder and head trader Travis Ford pleaded guilty on Jan. 10 to wire fraud conspiracy charges for his role in raising over $9 million from investors with false promises of high returns.

Magazine: ChatGPT a ‘schizophrenia-seeking missile,’ AI scientists prep for 50% deaths: AI Eye

Bitcoin-buying medical device firm Semler Scientific has seen its share price drop after the bell as its first-quarter revenues fell and losses deepened from the year-ago quarter.

In its Q1 earnings report released May 13, Semler reported its total revenues fell 44% from the year-ago quarter to $8.8 million, with its net losses hitting $64.7 million compared to a net income of $6.1 million in the first quarter of 2024.

Shares in Semler Scientific (SMLR) closed the May 13 trading session up over 5% but fell 1.91% to $36 after the bell with its earnings announcement, according to Google Finance. Semler’s stock is down over 32% so far this year.

Semler fell nearly 2% after announcing its Q1 results on May 13. Source: Google Finance

The company said it purchased 894 Bitcoin (BTC) over Q1 and held 3,192 BTC at a fair value of $263.5 million at the end of the quarter, which reflected a cumulative decrease of $16.9 million.

Semler added that between the end of Q1 and May 12, it purchased 616 BTC for a total cost of $59.6 million, increasing its holdings to 3,808 BTC at a fair value of $387.9 million at a purchase cost of $340 million.

Semler said that it made an unrealized gain of $41.6 million on its Bitcoin holdings over Q1, and its paper gains have continued to climb to $52 million so far this year, as of May 12.

Currently, Semler’s Debt to Bitcoin net asset value stands at 25.3%, according to its Bitcoin dashboard.

Semler has been aggressively ramping up its Bitcoin holdings. In an April 15 SEC filing, the company laid out its plans to sell $500 million of its own shares, with part of the proceeds being used to bolster its Bitcoin treasury.

Bitcoin buying firms on the rise

Bitcoin investment firm River reported that corporations and businesses have been the largest net buyers of Bitcoin so far this year, outpacing exchange-traded funds and retail investors.

Nearly 787,000 BTC is held by a total of 104 public companies, according to Bitcointreasuries.net data.

Strategy, formerly MicroStrategy, has been the largest Bitcoin buyer and currently holds more than 568,000 BTC, or nearly 2.7% of Bitcoin’s total supply.

Related: Semler Scientific buys another $10M worth of BTC

Analysts have stated that Bitcoin is now deflationary, as Strategy has claimed it has no plans to sell its Bitcoin holdings.

Meanwhile, on May 13, stablecoin issuer Tether bought $459 million worth of Bitcoin for Twenty One Capital, a Bitcoin investment company it has backed that is set to merge with Cantor Equity Partners.

Twenty One Capital is currently the third-largest Bitcoin holder after Strategy and MARA Holdings.

Blockstream CEO Adam Back said in April that demand from institutions will likely lead to “hyperbitcoinization,” which could see the asset’s market capitalization soar past $200 trillion.

Magazine: Adam Back says Bitcoin price cycle ’10x bigger’ but will still decisively break above $100K

Bitcoin-buying medical device firm Semler Scientific has seen its share price drop after the bell as its first-quarter revenues fell and losses deepened from the year-ago quarter.

In its Q1 earnings report released May 13, Semler reported its total revenues fell 44% from the year-ago quarter to $8.8 million, with its net losses hitting $64.7 million compared to a net income of $6.1 million in the first quarter of 2024.

Shares in Semler Scientific (SMLR) closed the May 13 trading session up over 5% but fell 1.91% to $36 after the bell with its earnings announcement, according to Google Finance. Semler’s stock is down over 32% so far this year.

Semler fell nearly 2% after announcing its Q1 results on May 13. Source: Google Finance

The company said it purchased 894 Bitcoin (BTC) over Q1 and held 3,192 BTC at a fair value of $263.5 million at the end of the quarter, which reflected a cumulative decrease of $16.9 million.

Semler added that between the end of Q1 and May 12, it purchased 616 BTC for a total cost of $59.6 million, increasing its holdings to 3,808 BTC at a fair value of $387.9 million at a purchase cost of $340 million.

Semler said that it made an unrealized gain of $41.6 million on its Bitcoin holdings over Q1, and its paper gains have continued to climb to $52 million so far this year, as of May 12.

Currently, Semler’s Debt to Bitcoin net asset value stands at 25.3%, according to its Bitcoin dashboard.

Semler has been aggressively ramping up its Bitcoin holdings. In an April 15 SEC filing, the company laid out its plans to sell $500 million of its own shares, with part of the proceeds being used to bolster its Bitcoin treasury.

Bitcoin buying firms on the rise

Bitcoin investment firm River reported that corporations and businesses have been the largest net buyers of Bitcoin so far this year, outpacing exchange-traded funds and retail investors.

Nearly 787,000 BTC is held by a total of 104 public companies, according to Bitcointreasuries.net data.

Strategy, formerly MicroStrategy, has been the largest Bitcoin buyer and currently holds more than 568,000 BTC, or nearly 2.7% of Bitcoin’s total supply.

Related: Semler Scientific buys another $10M worth of BTC

Analysts have stated that Bitcoin is now deflationary, as Strategy has claimed it has no plans to sell its Bitcoin holdings.

Meanwhile, on May 13, stablecoin issuer Tether bought $459 million worth of Bitcoin for Twenty One Capital, a Bitcoin investment company it has backed that is set to merge with Cantor Equity Partners.

Twenty One Capital is currently the third-largest Bitcoin holder after Strategy and MARA Holdings.

Blockstream CEO Adam Back said in April that demand from institutions will likely lead to “hyperbitcoinization,” which could see the asset’s market capitalization soar past $200 trillion.

Magazine: Adam Back says Bitcoin price cycle ’10x bigger’ but will still decisively break above $100K

Bitcoin-buying medical device firm Semler Scientific has seen its share price drop after the bell as its first-quarter revenues fell and losses deepened from the year-ago quarter.

In its Q1 earnings report released May 13, Semler reported its total revenues fell 44% from the year-ago quarter to $8.8 million, with its net losses hitting $64.7 million compared to a net income of $6.1 million in the first quarter of 2024.

Shares in Semler Scientific (SMLR) closed the May 13 trading session up over 5% but fell 1.91% to $36 after the bell with its earnings announcement, according to Google Finance. Semler’s stock is down over 32% so far this year.

Semler fell nearly 2% after announcing its Q1 results on May 13. Source: Google Finance

The company said it purchased 894 Bitcoin (BTC) over Q1 and held 3,192 BTC at a fair value of $263.5 million at the end of the quarter, which reflected a cumulative decrease of $16.9 million.

Semler added that between the end of Q1 and May 12, it purchased 616 BTC for a total cost of $59.6 million, increasing its holdings to 3,808 BTC at a fair value of $387.9 million at a purchase cost of $340 million.

Semler said that it made an unrealized gain of $41.6 million on its Bitcoin holdings over Q1, and its paper gains have continued to climb to $52 million so far this year, as of May 12.

Currently, Semler’s Debt to Bitcoin net asset value stands at 25.3%, according to its Bitcoin dashboard.

Semler has been aggressively ramping up its Bitcoin holdings. In an April 15 SEC filing, the company laid out its plans to sell $500 million of its own shares, with part of the proceeds being used to bolster its Bitcoin treasury.

Bitcoin buying firms on the rise

Bitcoin investment firm River reported that corporations and businesses have been the largest net buyers of Bitcoin so far this year, outpacing exchange-traded funds and retail investors.

Nearly 787,000 BTC is held by a total of 104 public companies, according to Bitcointreasuries.net data.

Strategy, formerly MicroStrategy, has been the largest Bitcoin buyer and currently holds more than 568,000 BTC, or nearly 2.7% of Bitcoin’s total supply.

Related: Semler Scientific buys another $10M worth of BTC

Analysts have stated that Bitcoin is now deflationary, as Strategy has claimed it has no plans to sell its Bitcoin holdings.

Meanwhile, on May 13, stablecoin issuer Tether bought $459 million worth of Bitcoin for Twenty One Capital, a Bitcoin investment company it has backed that is set to merge with Cantor Equity Partners.

Twenty One Capital is currently the third-largest Bitcoin holder after Strategy and MARA Holdings.

Blockstream CEO Adam Back said in April that demand from institutions will likely lead to “hyperbitcoinization,” which could see the asset’s market capitalization soar past $200 trillion.

Magazine: Adam Back says Bitcoin price cycle ’10x bigger’ but will still decisively break above $100K

Decentralized finance platform Synthetix is planning to venture further into crypto derivatives with plans to re-acquire the crypto options platform Derive.

Synthetix said in a May 14 blog post that it plans to acquire Derive in a token exchange deal, pricing 1 SNX token to 27 DRV tokens, which would value Derive at around $27 million. 

The transaction is subject to approval from both the Synthetix and Derive communities, which will take a vote on the proposal, called SIP-415, next week.

If approved, the acquisition will combine Derive’s front-end and real-world asset (RWA) expertise with Synthetix’s derivatives infrastructure.

Derive originally launched as Lyra in 2021, having spun out from the Synthetix ecosystem. Synthetix said the acquisition is part of a broader strategy that includes recent acquisitions of Kwenta and TLX, reflecting ecosystem consolidation.

“Reuniting under one banner simplifies our architecture and governance and unlocks the next phase,” Synthetix founder Kain Warwick said. “This is the kids going out to build their own successful startups, and coming back to join the family business.”

“This re-acquisition marks the next chapter of vertical reintegration with direct protocol ownership of perps, options, and app chains: all of which already have SNX in their DNA,” Synthetix added on X.

Source: Synthetix

The announcement names Hyperliquid, Binance, dYdX, and Deribit, which will be acquired by Coinbase, as competitors, underlining Synthetix’s ambitions to rival major crypto derivatives platforms.

SNX token mint and lockup

To facilitate the acquisition, Ethereum-based Synthetix will issue up to 29.3 million of its self-titled Synthetix (SNX) token with a three-month lock-up followed by a nine-month linear vesting.

SNX has gained 11.5% on the day to reach $0.94 at the time of writing.

Related: Upbit and Bithumb suspend Synthetix token deposits, citing sUSD risks 

However, like most altcoins, it is massively down from its peak and is down almost 97% from its all-time high of $28.53 in February 2021, according to CoinGecko. 

Synthetix has also suffered recently as its native stablecoin, sUSD, depegged and fell to a low of $0.68 on April 18. The dollar-pegged asset remains below its peg at $0.93 at the time of writing.  

Magazine: Metric signals $250K Bitcoin is ‘best case,’ SOL, HYPE tipped for gains: Trade Secrets

Decentralized finance platform Synthetix is planning to venture further into crypto derivatives with plans to re-acquire the crypto options platform Derive.

Synthetix said in a May 14 blog post that it plans to acquire Derive in a token exchange deal, pricing 1 SNX token to 27 DRV tokens, which would value Derive at around $27 million. 

The transaction is subject to approval from both the Synthetix and Derive communities, which will take a vote on the proposal, called SIP-415, next week.

If approved, the acquisition will combine Derive’s front-end and real-world asset (RWA) expertise with Synthetix’s derivatives infrastructure.

Derive originally launched as Lyra in 2021, having spun out from the Synthetix ecosystem. Synthetix said the acquisition is part of a broader strategy that includes recent acquisitions of Kwenta and TLX, reflecting ecosystem consolidation.

“Reuniting under one banner simplifies our architecture and governance and unlocks the next phase,” Synthetix founder Kain Warwick said. “This is the kids going out to build their own successful startups, and coming back to join the family business.”

“This re-acquisition marks the next chapter of vertical reintegration with direct protocol ownership of perps, options, and app chains: all of which already have SNX in their DNA,” Synthetix added on X.

Source: Synthetix

The announcement names Hyperliquid, Binance, dYdX, and Deribit, which will be acquired by Coinbase, as competitors, underlining Synthetix’s ambitions to rival major crypto derivatives platforms.

SNX token mint and lockup

To facilitate the acquisition, Ethereum-based Synthetix will issue up to 29.3 million of its self-titled Synthetix (SNX) token with a three-month lock-up followed by a nine-month linear vesting.

SNX has gained 11.5% on the day to reach $0.94 at the time of writing.

Related: Upbit and Bithumb suspend Synthetix token deposits, citing sUSD risks 

However, like most altcoins, it is massively down from its peak and is down almost 97% from its all-time high of $28.53 in February 2021, according to CoinGecko. 

Synthetix has also suffered recently as its native stablecoin, sUSD, depegged and fell to a low of $0.68 on April 18. The dollar-pegged asset remains below its peg at $0.93 at the time of writing.  

Magazine: Metric signals $250K Bitcoin is ‘best case,’ SOL, HYPE tipped for gains: Trade Secrets

Decentralized finance platform Synthetix is planning to venture further into crypto derivatives with plans to re-acquire the crypto options platform Derive.

Synthetix said in a May 14 blog post that it plans to acquire Derive in a token exchange deal, pricing 1 SNX token to 27 DRV tokens, which would value Derive at around $27 million. 

The transaction is subject to approval from both the Synthetix and Derive communities, which will take a vote on the proposal, called SIP-415, next week.

If approved, the acquisition will combine Derive’s front-end and real-world asset (RWA) expertise with Synthetix’s derivatives infrastructure.

Derive originally launched as Lyra in 2021, having spun out from the Synthetix ecosystem. Synthetix said the acquisition is part of a broader strategy that includes recent acquisitions of Kwenta and TLX, reflecting ecosystem consolidation.

“Reuniting under one banner simplifies our architecture and governance and unlocks the next phase,” Synthetix founder Kain Warwick said. “This is the kids going out to build their own successful startups, and coming back to join the family business.”

“This re-acquisition marks the next chapter of vertical reintegration with direct protocol ownership of perps, options, and app chains: all of which already have SNX in their DNA,” Synthetix added on X.

Source: Synthetix

The announcement names Hyperliquid, Binance, dYdX, and Deribit, which will be acquired by Coinbase, as competitors, underlining Synthetix’s ambitions to rival major crypto derivatives platforms.

SNX token mint and lockup

To facilitate the acquisition, Ethereum-based Synthetix will issue up to 29.3 million of its self-titled Synthetix (SNX) token with a three-month lock-up followed by a nine-month linear vesting.

SNX has gained 11.5% on the day to reach $0.94 at the time of writing.

Related: Upbit and Bithumb suspend Synthetix token deposits, citing sUSD risks 

However, like most altcoins, it is massively down from its peak and is down almost 97% from its all-time high of $28.53 in February 2021, according to CoinGecko. 

Synthetix has also suffered recently as its native stablecoin, sUSD, depegged and fell to a low of $0.68 on April 18. The dollar-pegged asset remains below its peg at $0.93 at the time of writing.  

Magazine: Metric signals $250K Bitcoin is ‘best case,’ SOL, HYPE tipped for gains: Trade Secrets

Decentralized finance platform Synthetix is planning to venture further into crypto derivatives with plans to re-acquire the crypto options platform Derive.

Synthetix said in a May 14 blog post that it plans to acquire Derive in a token exchange deal, pricing 1 SNX token to 27 DRV tokens, which would value Derive at around $27 million. 

The transaction is subject to approval from both the Synthetix and Derive communities, which will take a vote on the proposal, called SIP-415, next week.

If approved, the acquisition will combine Derive’s front-end and real-world asset (RWA) expertise with Synthetix’s derivatives infrastructure.

Derive originally launched as Lyra in 2021, having spun out from the Synthetix ecosystem. Synthetix said the acquisition is part of a broader strategy that includes recent acquisitions of Kwenta and TLX, reflecting ecosystem consolidation.

“Reuniting under one banner simplifies our architecture and governance and unlocks the next phase,” Synthetix founder Kain Warwick said. “This is the kids going out to build their own successful startups, and coming back to join the family business.”

“This re-acquisition marks the next chapter of vertical reintegration with direct protocol ownership of perps, options, and app chains: all of which already have SNX in their DNA,” Synthetix added on X.

Source: Synthetix

The announcement names Hyperliquid, Binance, dYdX, and Deribit, which will be acquired by Coinbase, as competitors, underlining Synthetix’s ambitions to rival major crypto derivatives platforms.

SNX token mint and lockup

To facilitate the acquisition, Ethereum-based Synthetix will issue up to 29.3 million of its self-titled Synthetix (SNX) token with a three-month lock-up followed by a nine-month linear vesting.

SNX has gained 11.5% on the day to reach $0.94 at the time of writing.

Related: Upbit and Bithumb suspend Synthetix token deposits, citing sUSD risks 

However, like most altcoins, it is massively down from its peak and is down almost 97% from its all-time high of $28.53 in February 2021, according to CoinGecko. 

Synthetix has also suffered recently as its native stablecoin, sUSD, depegged and fell to a low of $0.68 on April 18. The dollar-pegged asset remains below its peg at $0.93 at the time of writing.  

Magazine: Metric signals $250K Bitcoin is ‘best case,’ SOL, HYPE tipped for gains: Trade Secrets