Former executives at bankrupt cryptocurrency lender Cred have been charged with conspiracy to commit fraud. Daniel Schatt, co-founder and former CEO of Cred, former CFO Joseph Podulka and former chief capital officer James Alexander were indicted by the U.S. Attorney's Office for the Northern District of California.

Cred filed for bankruptcy in November 2020, estimating its liabilities between $100 million and $500 million, while having assets of less than $100 million.

Prosecutors said the defendants solicited clients by promising significant returns on cryptocurrency investments without disclosing that nearly all of the assets to pay the returns were generated by a single company involved in issuing unsecured microloans to Chinese gamers.

Cred Liquidation Trust continues to work to return funds to creditors.