New York AG settles for $5 million with Uphold in first enforcement action against a crypto yield product promoter
The Block
New York Attorney General Letitia James secured a $5 million settlement with Uphold over its misleading promotion of the failed CredEarn crypto yield product.Summary
New York Attorney General Letitia James reached a $5 million settlement with crypto platform Uphold for its role in promoting CredEarn, a third-party yield product that collapsed alongside operator Cred LLC in 2020. The settlement, which establishes a precedent for targeting product promoters under the Martin Act, found that Uphold marketed the product as safe while failing to disclose the risky nature of its underlying loans. Although Uphold admitted to the factual findings without accepting liability and CEO Simon McLoughlin contested the characterization of their involvement, the company must now implement rigorous due diligence processes for third-party products.
(Source：The Block)