New York upholds $5 million settlement over crypto platform's promotion of alleged fraud

ChainCatcher report: New York Attorney General Letitia James said the state has recovered more than $5 million from cryptocurrency platform Uphold in a settlement tied to its promotion of a fraudulent investment product. The case centers on CredEarn, a product launched by Cred LLC and its CEO Daniel Schatt. From January 2019 to October 2020, Uphold marketed CredEarn on its platform and mobile app as a safe, dependable savings product promising attractive annual returns. The Attorney General's office said Uphold did not disclose that Cred generated those returns by making small loans to low-income video game players, a borrower group that typically lacks credit histories and is often unable to access traditional financial services.