New York Attorney General demands Uphold to compensate users with $5 million

New York Attorney General Letitia James announced that cryptocurrency platform Uphold has been ordered to pay $5 million in compensation to affected users for promoting the allegedly fraudulent cryptocurrency wealth management product CredEarn. The investigation shows that Uphold did not disclose that CredEarn's revenue comes from issuing high-risk small loans to low-income Chinese gamers, and the so-called insurance protection does not exist. In addition, Uphold has not obtained the necessary qualifications to register as a broker or commodity broker dealer. After Cred went bankrupt in 2020, a large number of users suffered losses. Uphold will compensate $5 million and return $545000 of funds recovered from Cred's bankruptcy proceedings in the future. （ny.gov）