New York Attorney General Letitia James announced<\/a> the settlement earlier this week, putting an end to an investigation into Uphold\u2019s involvement with CredEarn, a crypto savings product operated by Cred, LLC, led by CEO Daniel Schatt.<\/p>\n From January 2019 to October 2020, Uphold marketed CredEarn to its user base via its platform and mobile application, promoting it as a secure investment option with promising annual returns. However, crucial information regarding the nature of these returns was not disclosed to users.<\/p>\n The returns were derived from microloans offered to low-income gamers in China. These borrowers typically had no prior credit history and lacked access to mainstream banking services, a fact that was omitted from Uphold’s advertising and communications.<\/p>\n My office secured over $5 million from Uphold, a cryptocurrency platform, for misleading people and promoting a fraudulent investment scheme.<\/p>\n I will tirelessly work to ensure that those who endanger people’s financial well-being are held accountable.<\/p>\n \u2014 NY AG James (@NewYorkStateAG) April 29, 2026<\/a><\/p>\n<\/blockquote>\n The misleading promotions<\/a> extended beyond the misleading description of the CredEarn product. The Attorney General\u2019s office indicated that Uphold falsely assured customers that Cred had comprehensive insurance for its investments, a claim that was unfounded. At the time, no protective insurance for retail investors against cryptocurrency losses existed in the industry.<\/p>\n Furthermore, Uphold was not in compliance with necessary regulations, as it lacked required registrations as a broker or commodity broker-dealer. These oversights contributed to significant financial repercussions for both the company and its users.<\/p>\n By March 2020, Cred began experiencing financial difficulties stemming from its lending model. Eight months later, the company declared bankruptcy, leaving a significant number of Uphold<\/a> customers empty-handed regarding their investments.<\/p>\n\n
<\/span>False Claims About Insurance<\/span><\/h2>\n
<\/p>\n