The former CEO and CFO of the encryption lending institution Cred LLC have been sentenced to imprisonment and fines for conspiracy to commit wire fraud.

PANews, August 30, reports that according to a court announcement, U.S. District Court Judge William Alsup ruled that former CEO Daniel Schatt and CFO Joseph Podulka of the cryptocurrency lending institution Cred LLC were each sentenced to 52 months and 36 months of federal imprisonment for conspiracy to commit wire fraud. In addition to the imprisonment, Judge Alsup also sentenced Schatt and Podulka to three years of supervised release and ordered them to pay a fine of $25,000. The defendants will begin serving their sentences on October 28, 2025. Judge Alsup has scheduled a restitution hearing for October 7, 2025. According to the plea agreement, Schatt and Podulka conspired to make incomplete and unreasonable positive representations about Cred’s business, which were misleading, while failing to disclose negative material information regarding the challenges and risks facing Cred’s business that would harm Cred’s customers. On November 7, 2020, Cred filed for bankruptcy. In the Cred bankruptcy proceedings, Cred’s customers and investors submitted over 6,000 claims totaling more than $140 million. According to the government’s sentencing memorandum, based on the valuation of various cryptocurrencies at the time of customer losses in August 2025, these claims total more than $1 billion.