On May 3, New York Attorney General Letitia James announced that the state has recovered over $5 million from the cryptocurrency platform Uphold due to its role in promoting a fraudulent investment product. The settlement primarily revolves around Uphold's promotion of the product CredEarn, launched by Cred LLC and its CEO Daniel Schatt. Between January 2019 and October 2020, Uphold marketed CredEarn on its platform and mobile app as a safe, reliable savings product offering attractive annual returns. However, the Attorney General's office stated that Uphold failed to inform users that Cred actually generated these returns by issuing small loans to low-income video game players, who typically lack credit histories and cannot access services from traditional financial institutions.
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New York State Forces Uphold to Pay $5 Million for Fraudulent Cryptocurrency Investment Scheme
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