by RAY LEWIS | The National DeskFormer executives of a cryptocurrency investment company were indicted last week for allegedly defrauding customers and investors of assets worth as much as $783 million.
The Northern District of California is home to many of the nation’s most innovative businesses,” U.S. Attorney Ismail Ramsey said. “Maintaining a market for continued prosperity requires rooting out those who use fraud as a substitute for success.” Schatt and Podulka allegedly continued to lie about Cred’s financial situation through the next several months, only revealing the truth to its investors when a customer asked about the company's finances in October 2020. Cred purportedly had no hedges, and its asset to liabilities ratio was off by tens of millions of dollars.
In February 2020, the company lost more than $8 million in a scam Alexander became victim to, according to the prosecutors. A month later, as the market crashed during the onset of the pandemic, Alexander allegedly told a customer the crash was a “good thing” for Cred despite the company’s solvency crisis.