Cred Executives Sentenced to 88 Months Combined in $140M Crypto Fraud Case

Daniel Schatt, former CEO of Cred, and Joseph Podulka, the defunct crypto lending platform's ex-CFO, received 52-month and 36-month prison sentences respectively for wire fraud conspiracy. The scheme resulted in approximately $1 billion in customer losses at current cryptocurrency valuations.

U.S. Attorney Craig Missakian emphasized the severe impact on Cred's customers, who unknowingly had their crypto collateral funneled to a Chinese firm connected to one of Cred's founders. The platform had offered interest-bearing accounts and crypto-backed loans before its 2020 collapse.

Both executives pleaded guilty in May and face three years of supervised release post-incarceration, along with $25,000 fines. The case highlights ongoing regulatory scrutiny of crypto lending platforms and their opaque yield-generation practices.