"Daniel Schatt, 55, of San Mateo, and Joseph Podulka, 53, of Palo Alto, each pleaded guilty on May 13 to one count of wire fraud conspiracy in connection with their roles in defrauding customers of Cred, a San Francisco-based 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."
"On Nov. 7, 2020, Cred filed for bankruptcy. Cred customers and investors filed more than 6,000 claims totaling more than $140 million in the Cred bankruptcy proceedings. According to the government's sentencing memorandum, those claims are worth over $1 billion using August 2025 valuations for the different cryptocurrencies that customers lost. In addition to the prison terms, Judge Alsup also sentenced Schatt and Podulka each to a three-year period of supervised release and fined each of them $25,000."
Daniel Schatt and Joseph Podulka pleaded guilty to one count of wire fraud conspiracy for presenting an incomplete, unreasonably positive, and misleading portrayal of Cred's business while failing to disclose negative material information and risks to customers. Schatt, Cred's co-founder and CEO, was sentenced to four years and four months in prison; Podulka, the CFO, received three years. Cred filed for bankruptcy on Nov. 7, 2020, triggering over 6,000 claims totaling more than $140 million; the government values those claims at over $1 billion using August 2025 cryptocurrency valuations. Each defendant also received three years supervised release, $25,000 fines, and faces restitution proceedings.
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