New York Attorney General Letitia James reached a settlement with the cryptocurrency platform Uphold. Uphold will pay more than $5 million to compensate users who were harmed by the promotion of the CredEarn product. The regulator’s allegations state that, between 2019 and 2020, Uphold promoted the product as a safe and secure yield instrument, but did not disclose its high-risk profit model in which it earned returns by issuing loans to low-credit Chinese gaming players, and falsely claimed that there was “full insurance.” Cred then went bankrupt in 2020, leading to user losses. (Cointelegraph)

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