Uphold settled with New York regulators by repaying over $5 million to customers impacted by Cred LLC’s collapse. The company rejected the state’s claims about its involvement in the crypto lender’s downfall while agreeing to the refund. Uphold denied knowing about Cred’s alleged fraud or intending to mislead users.
Repayment Details
Uphold will return $5.1 million to customers who held assets through its platform during Cred LLC’s 2021 implosion. The funds cover losses from the lender’s sudden shutdown. This resolves the dispute without Uphold admitting fault or wrongdoing.
Company Denials
Uphold explicitly denied having any knowledge of Cred LLC’s alleged fraudulent activities. The firm also stated it never intended to mislead customers about Cred’s operations. These denials were central to Uphold’s position throughout the regulatory proceedings.
Regulatory Dispute
New York regulators claimed Uphold played a role in Cred’s collapse. Uphold called this characterization a misrepresentation of its relationship with the failed lender. The settlement avoids any finding of liability while ending the enforcement action.
Affected customers should receive refunds within six weeks under the settlement terms. Uphold maintains it acted appropriately throughout Cred’s crisis and will continue serving its user base without operational changes.
