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Uphold is a multi-asset digital money platform that provides financial services to a global market. It serves 184+ countries, with 80+ currencies (traditional and crypto) and commodities, providing frictionless foreign exchange and cross-border remittance for members worldwide.
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New York State Attorney General: Over $5 million in restitution recovered from cryptocurrency platform Uphold
According to Cointelegraph, New York State Attorney General Letitia James announced that over $5 million in restitution has been recovered from the cryptocurrency platform Uphold for misleading consumers and promoting fraudulent investment schemes. Between January 2019 and October 2020, Uphold promoted CredEarn on its platform and mobile application, describing it as a safe, reliable savings product offering an attractive annual percentage yield (APY). However, Uphold failed to disclose the actual risks involved, and at the time, no insurance existed in the industry to protect retail investors against losses from digital assets. In addition to making misleading claims, Uphold also failed to register as a broker or commodity trading advisor as required by law. Starting in March 2020, Cred incurred massive losses due to high-risk loans and filed for bankruptcy in November of the same year—resulting in financial harm to thousands of Uphold users worldwide. Under the settlement terms, Uphold will directly pay $5 million to affected users—more than five times the fees it collected. Any funds Uphold recovers from Cred’s bankruptcy proceedings will also be transferred to harmed users.
New York Attorney General Orders Uphold to Pay Over $5 Million in Restitution for False Advertising of Crypto Savings Product
New York Attorney General Letitia James announced that crypto platform Uphold has been ordered to pay over $5 million in restitution to affected users for promoting CredEarn, a fraudulent crypto savings product. The investigation revealed that between January 2019 and October 2020, Uphold marketed CredEarn, offered by Cred LLC, as a "safe and secure" high-yield savings product, promising users it was "fully insured." However, Uphold failed to disclose that the returns actually came from issuing high-risk, small-dollar loans to low-income gamers in China, and that no such insurance coverage existed.The New York Attorney General’s office further noted that Uphold did not obtain the necessary broker or commodity broker-dealer registrations while promoting the product. After Cred filed for bankruptcy in 2020, many users suffered losses. Under the settlement, Uphold will directly pay $5 million in restitution to harmed users. Additionally, any future funds Uphold recovers from Cred’s bankruptcy proceedings, totaling $545,000, will also be returned in full to the affected investors. (ny.gov)