Daniel Schatt, former CEO of crypto lender Cred LLC, and Joseph Podulka, former CFO, have been sentenced to 52 and 36 months in federal prison, respectively, for wire fraud conspiracy. U.S. District Court Judge William Alsup also imposed a $25,000 fine and three years of supervised release for each. The sentences will commence on October 28, 2025, with a restitution hearing set for October 7, 2025. The charges stem from Schatt and Podulka's conspiracy to misrepresent Cred's business, misleading customers by omitting critical negative information. Cred filed for bankruptcy on November 7, 2020, with over 6,000 claims from customers and investors totaling over $140 million. The government's sentencing memorandum estimates these claims could exceed $1 billion, reflecting the valuation of lost cryptocurrencies as of August 2025.