Crypto Executives Face Prison Time for Defrauding Investors
Daniel Schatt and Joseph Podulka, former employees of crypto lending platform Cred, have been sentenced to years in federal prison for their roles in a wire fraud conspiracy. According to a press release from the US Attorney’s Office for the Northern District of California, the two executives were found guilty of deceiving investors and customers, resulting in significant financial losses. 
Conspiracy and Sentencing
Schatt and Podulka pleaded guilty to the charges in May and were sentenced to 52 months and 36 months in federal prison, respectively. The conspiracy began in March 2020, during the COVID-19 pandemic, when Cred’s hedging partner was forced to liquidate all trading positions due to a sudden decline in Bitcoin’s value. The two executives then made misleading representations about Cred’s financial situation, resulting in significant financial losses for investors and customers.
Investigation and Repercussions
The FBI investigated the case and worked with partners to bring the fraudsters to justice. “The FBI is committed to investigating investment frauds targeting cryptocurrency owners and working with our partners to put fraudsters behind bars,” said Matt Cobo, the incumbent FBI special agent. Schatt and Podulka are set to serve their sentences starting October 28, with a restitution hearing scheduled for October 7. For more information, visit https://cryptonews.com/news/ex-cred-execs-land-years-in-federal-prison/
