{"id":72055,"date":"2026-05-04T23:48:47","date_gmt":"2026-05-04T23:48:47","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/uphold-rejects-new-york-claims-after-5m-customer-repayment-deal\/"},"modified":"2026-05-04T23:48:47","modified_gmt":"2026-05-04T23:48:47","slug":"uphold-rejects-new-york-claims-after-5m-customer-repayment-deal","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/uphold-rejects-new-york-claims-after-5m-customer-repayment-deal\/","title":{"rendered":"Uphold Rejects New York Claims After $5M Customer Repayment Deal"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<p><strong>Key Takeaways:<\/strong><\/p>\n<ul>\n<li>Uphold disputed New York\u2019s claims and denied knowingly promoting Cred\u2019s alleged misconduct.<\/li>\n<li>Customers will receive more than $5 million through repayments and transferred bankruptcy recoveries.<\/li>\n<li>Settlement requires broker registration, tighter due diligence, and stronger compliance controls going forward.<\/li>\n<\/ul>\n<h2>Uphold Challenges New York CredEarn Settlement Claims<\/h2>\n<p>Uphold HQ Inc. disputed New York\u2019s <a href=\"https:\/\/news.bitcoin.com\/ny-ag-secures-5m-from-uphold-to-compensate-crypto-investors\/\">account<\/a> of its CredEarn settlement on May 4, 2026, saying the regulator misrepresented key facts about its role in Cred LLC\u2019s 2020 collapse. The company said the agreement resolves a civil inquiry tied to Cred and its CredEarn program, while denying knowledge of the alleged fraud or any intent to mislead customers.<\/p>\n<p>The settlement includes more than $5 million in customer repayment, broker registration, stronger third-party due diligence, and the transfer of any Cred bankruptcy recoveries to harmed investors. The company explained the payment was tied to statements it repeated from Cred that later proved false. CEO Simon McLoughlin said on social media platform X on May 4:<\/p>\n<blockquote>\n<p>\u201cWe agreed to pay $5M to customers, mainly because we unwittingly repeated statements made by Cred about its services that later turned out to be untrue.\u201d<\/p>\n<\/blockquote>\n<p>The firm argued the New York Office of the Attorney General\u2019s public statement conflicted with the agreed facts and wrongly suggested intentional misconduct. It emphasized that it did not admit liability under the settlement and rejected any claim that it knowingly promoted Cred\u2019s conduct.<\/p>\n<p><\/p>\n<h2>CredEarn Collapse Prompts Repayment and Compliance Changes<\/h2>\n<p>Moreover, the company indicated it did not learn of Cred\u2019s <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-liquidity\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">liquidity<\/a> problems until October 2020 and was unaware that CredEarn\u2019s financial statements were false. Cred, it added, misled both the platform and users while continuing to present the product as viable. After discovering the <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-liquidity\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">liquidity<\/a> issues, the firm reported it froze Cred\u2019s 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.<\/p>\n<p>The company said its intervention helped expose Cred\u2019s misconduct and prevent further customer exposure. It also confirmed it later cooperated with federal authorities in the prosecution of Cred executives. The company added:<\/p>\n<blockquote>\n<p>\u201cUphold, like its customers and CredEarn\u2019s other users, was a victim of Cred\u2019s deception. The U.S. Department of Justice correctly identified Uphold as a victim in its criminal prosecution of the Cred executives involved.\u201d<\/p>\n<\/blockquote>\n<p>The digital asset platform maintained it remains focused on transparency, compliance, and user protection while continuing to reject New York\u2019s characterization of its role.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/uphold-rejects-new-york-claims-after-5m-customer-repayment-deal\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways: Uphold disputed New York\u2019s claims and denied knowingly promoting Cred\u2019s alleged misconduct. Customers will receive more than $5 million through repayments and transferred bankruptcy recoveries. Settlement requires broker registration, tighter due diligence, and stronger compliance controls going forward. Uphold Challenges New York CredEarn Settlement Claims Uphold [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":72056,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72055"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=72055"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72055\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/72056"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=72055"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=72055"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=72055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}