Former Cred executives plead guilty, involved in an encryption fraud amounting to $150 million.

GateUser-6433627c · 2025-05-14T10:07:45+00:00

On May 14, Daniel Schatt, the former CEO of the bankrupt crypto lending service Cred, and Joseph Podulka, the former CFO, pleaded guilty in California District Court to knowingly misleading customers about the company's financial situation and lending operations in 2020, causing customers to lose up to $150 million in cryptocurrency. Judge William Alsup accepted a plea agreement and a sentencing hearing is scheduled for Aug. 26, leaving the pair facing up to 72 and 62 months in prison, respectively. Cred filed for bankruptcy in October 2020, and clients filed more than 6,000 claims worth more than $140 million.

GateUser-6433627c

2025-05-14 10:07:45

On May 14, the former CEO of the bankrupt encryption lending service platform Cred, Daniel Schatt, and former CFO Joseph Podulka pleaded guilty in a California federal court, admitting to intentionally misleading clients about the company’s financial condition and lending operations in 2020, resulting in losses of up to $150 million in Crypto Assets for clients. Judge William Alsup accepted the plea agreement, scheduling a sentencing hearing for August 26, with the two possibly facing up to 72 months and 62 months in prison, respectively. Cred filed for bankruptcy in October 2020, with clients filing over 6,000 claims worth more than $140 million.

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