Uphold to Pay Over $5M to Customers After NY Regulators Settlement

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Crypto Platform Uphold Faces $5M Blow From New York Regulators

Uphold is giving back over $5 million to customers it misled – a settlement that’s more than five times the profit the company made from the transaction.

A Settlement With Real Teeth

This week, New York Attorney General Letitia James revealed a settlement that resolves issues surrounding Uphold’s involvement with CredEarn, a cryptocurrency savings product offered by Cred, LLC and its CEO, Daniel Schatt.

Between January 2019 and October 2020, Uphold promoted CredEarn to its users, both on its website and in its app, advertising it as a secure way to earn consistent returns on their money. However, Uphold didn’t disclose how those returns were actually made.

Cred was providing small loans to people in China who played video games and didn’t have credit scores or bank accounts. Uphold didn’t mention this crucial information when promoting the investment to its customers.

My office obtained over $5 million from Uphold, a cryptocurrency company, after they misled investors and ran a fraudulent investment scheme.

I’m committed to making sure those who threaten people’s jobs and financial well-being face consequences for their actions.

— NY AG James (@NewYorkStateAG) April 29, 2026

The Insurance Claim That Wasn’t True

The deceptive promotion wasn’t limited to unclear wording. The Attorney General’s office found that Uphold falsely told customers Cred had complete insurance coverage. In reality, no insurance existed at the time to protect crypto investors from losses. Furthermore, Uphold wasn’t registered as a broker or commodity broker-dealer, which was legally required.

Problems finally surfaced for everyone involved. Cred started losing money due to its loans in March 2020, and eight months later, the company went bankrupt. This left thousands of Uphold customers around the world with no access to their money.

The settlement will pay affected users directly from a $5 million fund. Uphold is also due $545,189 from the ongoing Cred bankruptcy case, and any money recovered through that process will also be distributed to investors who were harmed. Customers will receive an email when the funds are deposited into their accounts.

James stated that investors deserve reliable financial guidance and that her office will continue to take action against those who jeopardize people’s money.

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2026-05-04 03:27