Crypto Platform Uphold Reaches $5 Million New York Settlement Over Promotion of Risky Product

From January 2019 to October 2020, Uphold promoted partner Cred’s CredEarn product on its platform and app, presenting high-risk crypto lending as a reliable savings product. Users suffered heavy losses after Cred filed for bankruptcy in November 2020. The case marks New York state’s first action against a third-party promoter of a yield product rather than its issuer, and warns banks that they are accountable for joint marketing and due diligence.

On April 29, 2026, New York Attorney General Letitia James announced a settlement with Uphold HQ, Inc. More than 6,000 customers invested about $50 million through the platform and lost over $34 million after Cred collapsed. Uphold must pay $5 million to affected investors, turn over recoveries from bankruptcy claims, strengthen reviews of third-party products and register as a broker-dealer.