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New York State orders Uphold to pay a $5 million fine for a fraudulent cryptocurrency investment scheme
Golden Finance reports that on May 3rd, New York State Attorney General Letitia James announced that the state has recovered over $5 million from cryptocurrency platform Uphold due to its role in promoting a fraudulent investment product.
The settlement mainly revolves around Uphold’s promotional activities for Cred LLC and its CEO Daniel Schatt’s product CredEarn. From January 2019 to October 2020, Uphold promoted CredEarn on its platform and mobile app as a safe, reliable savings product offering attractive annual yields.
However, the Attorney General’s office stated in a release that Uphold did not inform users that Cred was actually generating these returns by issuing small loans to low-income video game players, who typically have no credit history and are unable to access services from traditional financial institutions.