Executives receive 88-month prison terms for wire fraud conspiracy, following their involvement in a $140 million bankruptcy case.
In the world of cryptocurrency and technology, there's been a flurry of developments that have caught the attention of enthusiasts and investors alike. Here's a roundup of some of the most significant news from the past week.
Justice for Cred LLC
The U.S. justice system has handed down sentences to Daniel Schatt, co-founder and CEO, and Joseph Podulka, CFO, of Cred LLC. Both executives were sentenced for their roles in a wire fraud conspiracy that resulted in about $1 billion customer losses according to current coin valuations. Schatt received a 52-month sentence, while Podulka was given a 36-month sentence. Additionally, they were each ordered to serve three years of supervised release and pay a $25,000 fine.
Cred LLC's Downfall
The sentencing comes after Cred LLC filed for bankruptcy in November 2020. The company, which offered loans to customers primarily by using crypto as collateral and accepting deposits of cryptocurrency in exchange for interest, was heavily reliant on a relationship with a Chinese firm to generate the interest yield.
A New Partnership
On a more positive note, DBS, Franklin Templeton, and Ripple have teamed up to launch a tokenized fund. The partnership aims to create a new investment vehicle that leverages the benefits of blockchain technology and digital assets. Franklin Templeton is among the first to mint a USST from the new STBL project.
Crypto-Based Stablecoins on the Rise
The first XRP-backed stablecoin has launched on Flare, and the first spot XRP and Dogecoin ETFs have gone live in the United States. These developments further solidify the growing acceptance and adoption of cryptocurrencies as a viable investment option.
Ripple's Praise and Controversy
Cardano's founder, Hoskinson, has praised Ripple and the XRP community, while Coinbase has faced public criticism despite restoring a NBA champion's million-dollar account. Meanwhile, Intel's rally increased Trump's stake in the company by $4.9 billion, raising insider trading allegations.
Tech News
In tech news, Apple's iOS 26 comes with Liquid Glass, a new feature designed to reduce screen damage. However, some iPhone 17 buyers in China have complained about scratched backs and splash issues, casting a shadow on Apple's latest offering.
Stay Informed
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An unusual event that caught the attention of many was the appearance of a golden statue of Trump holding Bitcoin outside the U.S. Capitol. The statue, while not related to the world of finance or technology, certainly added an interesting twist to the week's news.
