• Uphold disputed New York’s claims and denied knowingly promoting Cred’s 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 HQ Inc. disputed New York’s account of its CredEarn settlement on May 4, 2026, saying the regulator misrepresented key facts about its role in Cred LLC’s 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.

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:

“We 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.”

The firm argued the New York Office of the Attorney General’s 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’s conduct.

Moreover, the company indicated it did not learn of Cred’s liquidity problems until October 2020 and was unaware that CredEarn’s financial statements were false. Cred, it added, misled both the platform and users while continuing to present the product as viable. After discovering the liquidity issues, the firm reported it froze Cred’s 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.

The company said its intervention helped expose Cred’s misconduct and prevent further customer exposure. It also confirmed it later cooperated with federal authorities in the prosecution of Cred executives. The company added:

“Uphold, like its customers and CredEarn’s other 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 asset platform maintained it remains focused on transparency, compliance, and user protection while continuing to reject New York’s characterization of its role.

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