Uphold to Pay $5 Million Restitution for Misleading Crypto Product Promotion

New York Attorney General Letitia James announced that Uphold will pay over $5 million in restitution for misleadingly promoting CredEarn as a safe and insured crypto savings product. According to NS3.AI, the Attorney General's office stated that Uphold marketed the product from January 2019 to October 2020 without revealing that the yields were derived from high-risk small-dollar loans in China and that the purported insurance was nonexistent. Additionally, the office noted that Uphold failed to obtain necessary broker or commodity broker-dealer registrations. Furthermore, $545,000 recovered from Cred’s bankruptcy will be distributed to affected users.