Former Cred Executives Sentenced for Wire Fraud Conspiracy

According to PANews, U.S. District Court Judge William Alsup has sentenced former Cred LLC CEO Daniel Schatt and CFO Joseph Podulka to federal prison terms of 52 months and 36 months, respectively, for conspiracy to commit wire fraud. In addition to imprisonment, Judge Alsup ordered both Schatt and Podulka to serve three years of supervised release and pay fines of $25,000 each. The defendants are scheduled to begin their sentences on October 28, 2025, with a restitution hearing set for October 7, 2025. Under their plea agreements, Schatt and Podulka admitted to conspiring to provide incomplete and misleadingly positive descriptions of Cred's business operations, failing to disclose significant negative information about the challenges and risks faced by Cred. These omissions were detrimental to Cred's customers. Cred filed for bankruptcy on November 7, 2020, with over 6,000 claims from customers and investors totaling more than $140 million. According to the government's sentencing memorandum, the total claims exceeded $1 billion when calculated using the August 2025 valuation of the various cryptocurrencies involved.