Penalty Amount
$5,000,000
New York Attorney General Letitia James secured a $5 million settlement from cryptocurrency platform Uphold HQ, Inc. for promoting Cred’s fraudulent CredEarn investment product as safe and reliable, when Cred was making risky loans to uncreditworthy borrowers in China. Uphold also falsely claimed Cred had comprehensive insurance and promoted the product without registering as a broker or commodity broker-dealer under New York law. As part of the settlement, Uphold will pay $5 million to harmed investors, remit $545,189 from Cred’s bankruptcy to customers, improve due diligence policies for third-party products, and register as a broker with the OAG.
Uphold will pay $5 million to customers who suffered losses from investing in CredEarn, and will remit all $545,189 received from Cred’s bankruptcy proceedings to harmed customers. Uphold must maintain and improve due diligence policies for third-party investment products, register as a broker with the OAG, and notify investors via email about fund distributions.
In-house legal teams at financial services and cryptocurrency platforms should review third-party partnership agreements to incorporate mandatory due diligence requirements for any investment products promoted on their platforms, including verification of regulatory registration (e.g., broker-dealer status), validation of insurance coverage claims, and accurate risk disclosures to customers. Customer-facing agreements and marketing materials should be audited to eliminate misleading claims about product safety or insurance protections. Vendor agreements should include clauses requiring third parties to comply with all applicable broker registration laws, and customer agreements should clearly outline refund processes for losses stemming from third-party product failures. Internal compliance policies governing third-party product promotion should be formalized into enforceable contractual obligations across all partnership agreements.
Entity
Uphold HQ, Inc.
Industry
Financial ServicesOfficial Press Release
https://ag.ny.gov/press-release/2026/attorney-general-james-secures-over-5-million-crypto-platform-promoting
uphold hq inc assurance of discontinuance 2026
https://ag.ny.gov/sites/default/files/settlements-agreements/uphold-hq-inc-assurance-of-discontinuance-2026.pdf
New York Attorney General Enforcement Page
https://ag.ny.gov/press-releases
"Attorney General James Secures Over $5 Million from Crypto Platform for Promoting Fraudulent Investment Scheme"
"April 29, 2026"
"New York Attorney General Letitia James"
"As a result of today’s settlement"
"Uphold HQ, Inc. (Uphold)"
"Uphold will pay $5 million to harmed investors"
New York Attorney General Letitia James issued a consumer alert on May 18, 2026, warning residents of potential price gouging by transportation service providers during the Long Island Rail Road strike. The alert reminds businesses that New York’s price gouging laws prohibit unconscionable price increases on essential services like transportation during market disruptions. No specific privacy violations or enforcement actions against individual entities were announced in the alert.
New York Attorney General Letitia James issued a consumer alert on May 18, 2026, warning businesses against engaging in price gouging on transportation services during the Long Island Rail Road strike. The alert reminds businesses that New York’s price gouging laws prohibit unconscionable price increases on essential goods and services during market disruptions, with potential penalties of up to $25,000 per violation. No specific enforcement action against a particular entity was announced, only a general warning for businesses and a call for consumers to report suspected price gouging.
This press release announces New York Attorney General Letitia James leading a coalition of 21 state attorneys general, the District of Columbia, and Pennsylvania’s Governor in filing an amicus brief with the U.S. Supreme Court to stay a Fifth Circuit ruling that would reinstate in-person dispensing requirements for mifepristone, a medication used for abortion. The coalition argues the ruling is scientifically unsupported, would restrict telehealth access to reproductive care, and undermines state sovereignty over abortion policy post-Dobbs. This is not a privacy-related enforcement action, as the content addresses reproductive health policy rather than data privacy violations.
$7.4B
New York Attorney General Letitia James announced the shutdown of opioid manufacturer Purdue Pharma as part of a $7.4 billion settlement with a bipartisan coalition of 54 other state attorneys general. The Sackler family, former owners of Purdue, are permanently barred from selling opioids in the U.S. and have no involvement in Knoa Pharma, the new public benefit corporation replacing Purdue. Purdue was sentenced on criminal charges related to its role in the opioid crisis on April 28, 2026, with the new entity operating under strict oversight and excess revenue funding opioid abatement efforts.
New York Attorney General Letitia James led a bipartisan coalition of 24 state attorneys general, Puerto Rico, and New York City in sending letters to nine major credit card companies and payment processors urging them to block transactions facilitating illegal vaping product sales. The coalition cites federal and state laws prohibiting unauthorized e-cigarette sales, particularly to youth, and requests collaboration to prevent payment networks from processing such transactions. No enforcement penalties or actions were imposed as part of this initiative.
New York Attorney General Letitia James announced the conviction of tax preparer and insurance agent Miles Burton Marshall for operating a decades-long Ponzi scheme that defrauded 988 investors out of more than $50 million. Marshall pleaded guilty to Grand Larceny in the Second Degree, Securities Fraud under the Martin Act, and Scheme to Defraud in the First Degree, and faces four to 12 years in prison plus approximately $90 million in restitution to victims.