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New York Attorney General recovers over $5 million from Uphold
The New York State Attorney General’s Office announced it has recovered over $5 million in compensation from the crypto platform Uphold related to the promotion of misleading investment products.
This amount is associated with the CredEarn program that Uphold previously promoted on its platform and mobile app from January 2019 to October 2020, describing it as a safe savings product with attractive interest rates.
Authorities stated that Uphold did not fully disclose the actual risks and at that time, there was no insurance in the industry sufficient to protect retail investors from digital asset losses. Additionally, Uphold is accused of failing to register as a broker or commodity trading advisor as required.
Cred began suffering significant losses from March 2020 due to high-risk lending activities and filed for bankruptcy in November of the same year, affecting thousands of Uphold users worldwide. Under the agreement, Uphold directly paid $5 million to affected users, and any additional recovered funds from Cred’s bankruptcy proceedings will also be transferred to this group.
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