Former Cred LLC Executives Sentenced to Prison for Wire Fraud Conspiracy

Daniel Schatt and Joseph Podulka, former executives of crypto lender Cred LLC, have been sentenced to federal prison terms of 52 months and 36 months, respectively. The sentencing follows their guilty pleas to charges of wire fraud conspiracy tied to the collapse of the platform, which misled customers about its financial health.

Senior US District Judge William Alsup handed down the sentences on August 29, 2025. Both men will begin serving their terms on October 28, 2025, and face three years of supervised release along with $25,000 fines each. A restitution hearing scheduled for October 7 will determine how victims—who suffered losses exceeding $1 billion—will be compensated.

Cred LLC previously offered dollar loans backed by crypto collateral and yield-bearing deposit accounts. The indictment, filed in May 2024, highlighted systemic deception about the firm's failing investments.