Uphold Rejects New York Claims After $5M Customer Repayment Deal
Key Takeaways:
CredEarn Collapse Prompts Repayment and Compliance Changes
Moreover, the company indicated it did not learn of Cred’s liquidity problems until October 2020 and was unaware that CredEarn’s financial statements were false. Cred, it added, misled both the platform and users while continuing to present the product as viable. After discovering the liquidity issues, the firm reported it froze Cred’s platform access within hours, stopped further customer transfers, and demanded that Cred notify regulators about customer-fund losses. It further noted it warned Cred that it would contact regulators directly if Cred failed to act.
The company said its intervention helped expose Cred’s misconduct and prevent further customer exposure. It also confirmed it later cooperated with federal authorities in the prosecution of Cred executives. The company added:
“Uphold, like its customers and CredEarn’s other users, was a victim of Cred’s deception. The U.S. Department of Justice correctly identified Uphold as a victim in its criminal prosecution of the Cred executives involved.”
The digital asset platform maintained it remains focused on transparency, compliance, and user protection while continuing to reject New York’s characterization of its role.
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