Just caught this—Uphold getting hit with a $5 million fine for pushing CredEarn, this sketchy 'high-yield savings' product that turned out to be a complete scam. The whole thing collapsed back in 2020 and people lost their money. Wild part is they were generating returns through risky microloans to people in China with zero credit history, but told users it was insured. Spoiler alert: there was no insurance.

Latitia James and New York's AG office have been on a tear lately with crypto platforms. They've gone after several major exchanges over registration issues and misleading investors—this Uphold case is just the latest. The settlement means affected users should get payouts from the $5M, plus whatever Uphold recovers from Cred's bankruptcy proceedings. Kind of crazy how many platforms operated without proper licensing for so long. Makes you wonder what else is flying under the radar. The regulatory pressure is definitely ramping up though—platforms can't just slap disclaimers on risky products anymore.