"Uphold will pay more than $5 million in customer compensation tied to CredEarn, a third-party crypto investment product from Cred LLC, which was available from January 2019 to October 2020."
"The Office of the NY Attorney General found that customers were given a savings-style presentation, while Cred generated returns through risky lending activity to video game players in China."
"Uphold stated that Cred had comprehensive insurance, although no coverage protected retail investors from digital asset investment losses, highlighting the risks involved."
"New York Attorney General Letitia James emphasized that investors should be able to trust the industry advice they receive and that her office will hold bad actors accountable."
Uphold HQ Inc. will compensate customers over $5 million due to losses from CredEarn, a third-party crypto investment product. The New York settlement mandates enhanced product-review standards, broker registration, and the distribution of any bankruptcy recoveries to affected investors. CredEarn, available from January 2019 to October 2020, misrepresented its risks by presenting itself as a savings product while relying on risky lending practices. The New York Attorney General emphasized the need for trust in the industry and accountability for those jeopardizing customer financial security.
Read at news.bitcoin.com
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