New York AG Secures Over $5 Million From Uphold Over Promotion of Allegedly Fraudulent Crypto Product

May 3 — New York Attorney General Letitia James said the state has recovered more than $5 million from cryptocurrency platform Uphold to resolve allegations tied to its promotion of a fraudulent investment product. The settlement centers on Uphold's marketing of CredEarn, an offering launched by Cred LLC and its CEO, Daniel Schatt. From January 2019 through October 2020, Uphold promoted CredEarn across its platform and mobile app as a safe, dependable savings product with an attractive annualized yield. According to the Attorney General's office, Uphold did not disclose to users that Cred generated those returns by making small loans to low-income electronic gamers—borrowers who typically lack credit histories and have limited access to traditional financial services.