Former CEO and CFO of crypto lender Cred LLC sentenced to prison and fined for wire fraud conspiracy

PANews reported on August 30th that, according to a court announcement, U.S. District Court Judge William Alsup sentenced Daniel Schatt, former CEO of crypto lender Cred LLC, and Joseph Podulka, former CFO, to 52 and 36 months in federal prison, respectively, for wire fraud conspiracy. In addition to the prison sentences, Judge Alsup also sentenced Schatt and Podulka to three years of supervised release each and ordered them to pay a $25,000 fine. The defendants are scheduled to begin serving their sentences on October 28, 2025. Judge Alsup has scheduled a restitution hearing for October 7, 2025.

According to the plea agreement, Schatt and Podulka conspired to present an incomplete and unreasonably favorable description of Cred's business, thereby misleading, and failed to disclose material negative information about Cred's business challenges and risks that would harm Cred's customers. On November 7, 2020, Cred filed for bankruptcy. During Cred's bankruptcy proceedings, Cred's customers and investors submitted over 6,000 claims totaling over $140 million. According to the government's sentencing memorandum, these claims totaled over $1 billion, based on the estimated valuation of various cryptocurrencies lost by customers in August 2025.