- New York AG Letitia James reached a $5 million settlement with cryptocurrency platform Uphold HQ Inc. for allegedly misleading investors while promoting CredEarn, a crypto investment product from now-collapsed Cred LLC, in violation of the Martin Act and Executive Law § 63(12).
- According to the AG’s office, Uphold promoted CredEarn as a safe, reliable savings product with comprehensive insurance, while Cred allegedly generated returns through risky micro-loans to borrowers in China with low incomes and no credit histories. The AG’s office also alleged that Uphold offered CredEarn securities and offered or sold cryptocurrency without registering as a broker or commodity broker-dealer with the state.
- Under the assurance of discontinuance, Uphold will pay $5 million to harmed investors, transfer any Cred bankruptcy distributions it receives to customers, strengthen due diligence for third-party investment products, and register as a broker with the state.
- The settlement follows AG James’ broader crypto enforcement push, including actions against Genesis, Gemini Trust Company, KuCoin, Coin Cafe, NovaTechFx, and AWS Mining over alleged investor fraud, deceptive conduct, and registration violations.