NY prosecutors reach $5M settlement with crypto platform Uphold

New York prosecutors have reached a $5 million settlement with cryptocurrency platform Uphold in the state's first enforcement action related to the promotion of crypto interest-bearing products, The Block reported. New York Attorney General Letitia James stated that Uphold promoted a third-party interest product, "CredEarn," as a safe, deposit-like instrument without adequately disclosing its underlying revenue structure. The product's operator, Cred, went bankrupt in 2020, leading to significant investor losses. Under the agreement, Uphold will pay the $5 million fine and must enhance its due diligence procedures for any future third-party offerings. Funds recovered from Cred's bankruptcy proceedings are also slated to be returned to investors. The case affected over 6,000 users who invested a total of $50 million in CredEarn through Uphold, ultimately losing more than $34 million.