Ex-CRED Executives Receive Federal Prison Sentences for $150M Crypto Fraud

A federal court has delivered prison sentences to former executives of CRED for orchestrating a cryptocurrency fraud scheme that resulted in $150 million in losses. DineroonG DejamKorn, the founder and former CEO of CRED, was sentenced to 11 years in prison. Stephen Alexander, the company’s former Chief Credit Officer, received an eight-year prison sentence. The two executives were convicted of conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, and securities fraud. According to evidence presented at trial, DejamKorn and Alexander illegally transferred customer funds into their personal accounts and used the money to fund lavish lifestyles and purchase luxury assets. They also misled investors about CRED’s financial performance and concealed significant losses. The fraud caused substantial financial harm to investors, who lost retirement savings and other investments. CRED declared bankruptcy in 2020. The U.S. Attorney stated that he hopes the sentences will send a strong message to those who seek to exploit investors in the cryptocurrency market. The case represents a significant milestone in the prosecution of cryptocurrency crimes, demonstrating the Justice Department’s commitment to holding individuals accountable for fraud and financial misconduct.