Ex-Cred Executives Sentenced to Combined 88 Months in Prison Over $140M Fraud

Two former executives of collapsed crypto lender Cred LLC have been sentenced to a combined 88 months in federal prison for wire fraud conspiracy. The scheme defrauded over 6,000 customers, with losses exceeding $140 million—a figure that balloons to $1 billion at current crypto valuations.

Daniel Schatt, co-founder and ex-CEO, received a 52-month term, while former CFO Joseph Podulka was handed 36 months. Both pleaded guilty in May to deceptive practices at the San Francisco-based platform, which offered crypto-backed loans and yield-bearing deposits before its 2020 bankruptcy.

The case underscores the risks of opaque lending strategies in volatile markets. Cred's implosion ranks among the costliest failures in crypto lending history, exacerbated by risky overseas partnerships and mismanagement during the COVID-19 market crash.