On 29 April 2026, New York Attorney General Letitia James announced an Assurance of Discontinuance with Uphold HQ Inc. The settlement resolves an investigation into Uphold's promotion and offer of CredEarn. CredEarn was a yield product issued by Cred LLC and its CEO, Daniel Schatt. The investigation concluded that Uphold's marketing of the product violated New York law. The Office of the Attorney General secured the agreement without filing suit. The matter is final.
The settlement was an Assurance of Discontinuance, the vehicle the Office of the Attorney General uses to resolve investigations. The investigation rested on findings that Uphold's marketing of CredEarn violated New York securities and consumer protection statutes. Uphold did not admit or deny the allegations. The agreement requires payment of more than $5 million to harmed investors. Uphold must register as a broker with the Office of the Attorney General.
Crypto platforms that promote third-party yield products to retail customers in New York face a clearer enforcement posture. The settlement requires Uphold to register as a broker with the Office of the Attorney General. Uphold must also adopt and maintain due diligence policies before partnering with or recommending third-party investment products. The action signals continued scrutiny of yield, lending, and savings products marketed alongside trading services. Custody-only and pure brokerage models remain unaffected by the specific terms.
The settlement money is restitution to harmed investors. Uphold's payout exceeds five times the fees it earned from CredEarn. The agreement does not bar Uphold from operating in New York. It does impose ongoing diligence and registration duties enforceable by the Office of the Attorney General. Other states have brought parallel actions tied to Cred-related promotions. Investors holding outstanding claims in the Cred bankruptcy retain their rights in that proceeding.
Licentium advises crypto exchanges, custodians, and yield product issuers on US state enforcement risk and on Assurance of Discontinuance terms. Where a matter sits outside our practice we coordinate with our partner network. Contact us to discuss your exposure. Work we undertake includes Martin Act response strategy, third-party product diligence policies, broker-dealer registration analysis, retail marketing review, and CredEarn-style consumer claim assessments.
Source: New York Office of the Attorney General, Press Release, 'Attorney General James Secures Over $5 Million from Crypto Platform for Promoting Fraudulent Investment Scheme', 29 April 2026, https://ag.ny.gov/press-release/2026/attorney-general-james-secures-over-5-million-crypto-platform-promoting; confirmed 7 May 2026.
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