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Former Cred CEO Daniel Schatt Sentenced to 52 Months in Prison for Wire Fraud Conspiracy Convictions
The Grimy Times has learned that former Cred LLC executives Daniel Schatt and Joseph Podulka were sentenced to prison for their roles in defrauding customers of the San Francisco-based cryptocurrency lender. Senior U.S. District Judge William Alsup handed down the sentences on May 13, 2025.
Schatt, 55, of San Mateo, and Podulka, 53, of Palo Alto, were indicted by a federal grand jury in May 2024. Defendants each pleaded guilty to one count of wire fraud conspiracy in connection with their roles in defrauding customers of Cred, a firm that provided financial services to holders of cryptocurrency and other assets. Schatt, who co-founded Cred, served as the CEO and Podulka served as the company’s CFO.
According to the plea agreements, Schatt and Podulka conspired to present an incomplete, unreasonably positive, and thus misleading portrayal of Cred’s business while failing to disclose negative material information about Cred’s business challenges and risks to Cred’s customers. The defendants’ criminal conspiracy caused significant harm to Cred’s customers.
“The defendants’ criminal conspiracy caused significant harm to Cred’s customers,” said United States Attorney Craig H. Missakian. “This prosecution should serve as a reminder that my Office will aggressively prosecute fraud schemes undermining the integrity of cryptocurrency markets. Fraud targeting cryptocurrency investors and customers will not be tolerated and wrongdoers will be held accountable for their actions.”
“Daniel Schatt and Joseph Podulka orchestrated a scheme in which they deceived both investors and customers out of their hard-earned funds in an attempt to extend a failing business. The FBI is committed to investigating investment fraud schemes targeting cryptocurrency holders and working with our partners to bring fraudsters to justice,” said Acting FBI Special Agent in Charge Matt Cobo.
Schatt was sentenced to 52 months in federal prison, while Podulka received a sentence of 36 months in federal prison. By late 2018, Cred’s business included two principal customer offerings: offering loans in U.S. dollars to customers using customers’ cryptocurrency as collateral and accepting deposits of cryptocurrency in exchange for a promise for a yield (interest payments) for that cryptocurrency.
Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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