Key Takeaways:
Uphold will pay more than $5 million to customers tied to CredEarn losses. Regulators said CredEarn was presented like savings while relying on risky lending activity. Next, Uphold must strengthen due diligence, register as a broker, and distribute recoveries. Uphold Settlement Raises Crypto Investor Protection Stakes“Investors should be able to trust the industry advice they receive, and my office will always work to ensure bad actors are held accountable for endangering their customers’ financial security.”
The investigation also found that Uphold promoted CredEarn without registering as a broker or commodity broker-dealer under New York law.
New York Crypto Enforcement Pushes Stronger ComplianceThe repayment plan directs $5 million to customers who suffered losses, more than five times the fees Uphold collected from the arrangement. Uphold must also transfer any recovery it receives from Cred’s bankruptcy proceedings to affected customers. It is owed $545,189 in that case. Investors will receive an email from Uphold explaining that funds will be distributed to their accounts. James said:
