Overview
- The settlement, announced April 29, requires Uphold to pay more than $5 million directly to customers and to pass along any recovery from Cred’s bankruptcy, where it is owed about $545,000.
- New York’s Attorney General says Uphold promoted CredEarn as a safe, insured savings product while Cred generated yields through risky microloans to video game players in China that were not disclosed to users.
- Regulators say Uphold operated without required broker or commodity broker-dealer registration, and the agreement orders improved due diligence before the platform recommends third-party products.
- Uphold countered that Cred deceived it and said it froze Cred’s access within hours in October 2020, adding that it settled without admitting liability.
- More than 6,000 Uphold customers put about $50 million into CredEarn and later lost over $34 million, and the case highlights a broader push by New York to police crypto marketing and partnerships.