New York Attorney General Orders Uphold to Pay Over $5 Million in Restitution for Misleading Crypto Investment Product Claims
Odaily Planet Daily News 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 the allegedly fraudulent crypto investment product CredEarn. The investigation revealed that between January 2019 and October 2020, Uphold marketed CredEarn, launched by Cred LLC, as a "safe and reliable" high-yield savings product, promising users "full insurance coverage." However, it failed to disclose that the returns were actually generated from issuing high-risk micro-loans to low-income gamers in China, and the promised insurance coverage did not exist.
The New York Attorney General's Office also noted that during the promotion of this product, Uphold did not obtain the necessary broker or commodity broker-dealer registration qualifications. When Cred filed for bankruptcy in 2020, numerous users suffered losses. Under the settlement, Uphold will directly pay $5 million in restitution to victimized users. Additionally, the $545,000 in funds it recovers in the future from Cred's bankruptcy proceedings will also be returned in full to the relevant investors. (ny.gov)
