Edit: Cred — CryptoScamsWiki

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## Summary

Cred LLC was a San Francisco-based crypto lending firm whose "CredEarn" program — marketed heavily through the Uphold exchange as "safe," "secured," "insured," and "fully hedged" — let customers lend their crypto for yield. Cred filed for bankruptcy in November 2020, one of the first major U.S. crypto bankruptcies, with customer losses the DOJ later valued at more than $783 million. [1][2]

## The fraud

Per the DOJ, from no later than March 2020 executives made false statements: that Cred only did collateralized/guaranteed lending, hedged its crypto investments, and had comprehensive insurance. In reality much of the lending was uncollateralized and concentrated, its hedging ended, and a major borrower could not repay — which the executives concealed. [1][2]

## Outcome

In May 2024 the DOJ indicted CEO/co-founder Daniel Schatt, CFO Joseph Podulka, and CCO James Alexander. Schatt and Podulka pleaded guilty to wire-fraud conspiracy in May 2025 and were sentenced in September 2025 to 52 and 36 months, respectively. [1][2]

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