Uphold has agreed to pay $5 million to resolve enforcement actions taken by the New York Attorney General regarding its role in promoting the CredEarn crypto lending product associated with the bankrupt Cred LLC. According to a settlement agreement reached on April 29, 2026, the platform is also required to compensate investors from its Cred bankruptcy claims and register as a broker in the state.
TLDR Key Points
New York Settlement Requirements for Uphold
The enforcement outcome is a Assurance of Discontinuance, which is a negotiated agreement with the New York Attorney General's office under the Martin Act and Section 63(12) of the Executive Law. This is not a final court order, which is crucial for how obligations will be enforced in the future.
How CredEarn Losses Turned Platform Partnerships into Fraud Cases
Uphold acknowledged the factual findings in paragraphs 1 to 16 of the assurance. These findings indicate that over 6,000 customers invested approximately $50 million in CredEarn through the Uphold platform.
Investor losses exceeded $34 million. The New York Attorney General's office found that Uphold made significant misstatements or omissions in its promotion of CredEarn and engaged in unregistered broker activities.
The New York action against Uphold primarily focused on the platform's role as a promotional channel rather than the fraud itself. This distinction is important as it clarifies the responsibility of distribution partners for how they market and facilitate entry into a product that was ultimately proven to be fraudulent.
Why This Settlement is Crucial for Crypto Platforms
Attorney General Letitia James framed this action as a consumer protection issue.
“Investors should be able to trust the industry advice they receive.”
For exchanges, this means stricter standards are needed for product reviews and third-party product marketing. Platforms listing or promoting yield products, staking services, or loan programs from external partners face increased scrutiny to ensure their disclosures are adequate and that they are not acting as unregistered brokers.
After the settlement, Uphold publicly disagreed with some of the Attorney General's narrative. CEO Simon McLoughlin stated that the Attorney General's remarks were “seriously inaccurate and misrepresented the facts of the case,” according to a company statement released on April 30, 2026. This position has not been independently verified against the assurance terms.