Uphold rejected settlement demands from New York’s CredEarn, saying the regulator misrepresented its role in Cred LLC’s collapse. The company agreed to refund more than $5 million to its customers while denying knowledge of alleged fraud or any intent to mislead customers.
Key points to remember:
- Uphold disputed New York’s claims and denied knowingly encouraging Cred’s alleged misconduct.
- Customers will receive more than $5 million in transferred bankruptcy refunds and recoveries.
- The settlement requires broker registration, stricter due diligence and stricter compliance checks going forward.
Supporting New York CredEarn Settlement Claims Challenges
Uphold HQ Inc. challenged New York’s account of its CredEarn settlement on May 4, 2026, saying the regulator misrepresented key facts about its role in the collapse of Cred LLC in 2020. The company said the agreement resolves a civil investigation related to Cred and its CredEarn program, while denying knowledge of the alleged fraud or any intent to mislead customers.
The settlement includes more than $5 million in customer reimbursements, broker registration, increased third-party due diligence and the transfer of any bankruptcy recoveries from Cred to injured investors. The company explained that the payment was linked to repeated statements by Cred that later turned out to be false. CEO Simon McLoughlin said on social media platform X on May 4:
“We agreed to pay clients $5 million, primarily because we unwittingly repeated statements made by Cred about its services, which were later found to be false.”
The firm argued that the New York Attorney General’s office’s public statement was inconsistent with agreed-upon facts and falsely suggested intentional misconduct. She stressed that she did not admit liability under the settlement and rejected any claim that she knowingly encouraged Cred’s behavior.
CredEarn collapse leads to reimbursement and compliance changes
Additionally, the company indicated that it only became aware of Cred’s liquidity issues in October 2020 and was unaware that CredEarn’s financial statements were false. Cred, he adds, misled both the platform and users while continuing to present the product as viable. After discovering the liquidity issues, the company reported freezing access to Cred’s platform within hours, stopping customer transfers and demanding that Cred notify regulators of losses of customer funds. He further indicated that he had warned Cred that he would contact regulators directly if Cred did not act.
The company said its intervention helped expose Cred’s misconduct and prevent further customer exposure. She also confirmed that she subsequently cooperated with federal authorities in the prosecution of Cred leaders. The company added:
“Uphold, like its customers and other CredEarn 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 assets platform asserted that it remains focused on transparency, compliance and user protection, while continuing to reject New York’s characterization of its role.
