Cred Executives Sentenced for $1B Crypto Fraud Scheme

Former Cred executives Daniel Schatt and Joseph Podulka received federal prison sentences of 52 and 36 months respectively for wire fraud conspiracy. The scheme involved misleading investors about failing crypto investments at Cred LLC, resulting in over $1 billion in customer losses.

Acting FBI Special Agent Matt Cobo emphasized the bureau's commitment to investigating cryptocurrency fraud cases. "These defendants deceived both investors and customers to prop up a failing business," Cobo stated. The sentencing marks another high-profile enforcement action in the crypto space.

Both executives pleaded guilty in May after being indicted last year alongside Cred's Chief Capital Officer. The case highlights ongoing regulatory scrutiny of cryptocurrency lending operations and investment practices.