PANews reported on May 3rd, citing Cointelegraph, that New York State Attorney General Letitia James stated that over $5 million in compensation has been recovered from the cryptocurrency platform Uphold for misleading consumers and promoting fraudulent investment schemes. Between January 2019 and October 2020, Uphold promoted CredEarn to users on its platform and mobile application, claiming it was a safe, reliable savings product with attractive annual interest rates. However, Uphold failed to disclose the actual risks, and at the time, no such insurance existed in the industry to protect retail investors from losses in digital assets. In addition to misleading advertising, Uphold also failed to register as a broker or commodity broker-dealer as required. Starting in March 2020, Cred suffered huge losses due to high-risk lending and filed for bankruptcy in November of the same year, resulting in losses for thousands of Uphold users worldwide. Under the settlement terms, Uphold directly paid $5 million to affected users (more than five times its fees). Any funds recovered by Uphold from Cred's bankruptcy proceedings will also be transferred to the affected users.