Is Uphold Safe? (2025 Update)

What is Uphold?

Uphold is a New York-based digital money platform founded in 2013. The company serves over 10 million customers worldwide and supports more than 250 cryptocurrencies, traditional currencies, and precious metals. 

Uphold is known for its transparent fee structure, regulatory compliance, and unique "Anything-to-Anything" trading that lets users convert between different asset classes instantly (like trading gold for cryptocurrency!)

What security features does Uphold have?

Let's walk through some of Uphold's security features:

• Cold storage: Uphold stores the majority of user funds offline in cold storage, which protects cryptocurrency from online attacks. 
• Two-factor authentication (2FA): Users can enable SMS or Google Authenticator for account protection. 
• 100% Reserve Model: Uphold maintains real-time proof of reserves showing all user funds are fully backed 1:1, with publicly available data updated every 30 seconds.

Has Uphold ever been hacked?

No, Uphold has never experienced a hack or loss of customer funds throughout its operational history. 

In 2022, Customer.io, a third-party firm that Uphold used to send emails, faced a data breach which led to some Uphold users’ emails being leaked. No customer funds were lost in this incident. 

Is Uphold FDIC insured?

Crypto on Uphold is not FDIC insured. Generally, cryptocurrency is not subject to FDIC protection. 

However, fiat funds in Uphold's USD Interest Account are held at FDIC-insured partner banks, providing protection for users. 

What legal and regulatory issues has Uphold faced?

Uphold has maintained relatively clean regulatory standing, but has seen some issues in the past. 

Uphold settled a class action lawsuit for unauthorized access to customer accounts in 2024. 

Some users have reported account freezes during enhanced verification processes, particularly when additional proof of funds documentation is requested. 

Is Uphold legal in the U.S.?

Yes. Uphold is licensed to operate in the United States. 

Why should I use Uphold?

Uphold is a great choice if you are looking for a secure exchange and the ability to trade between cryptocurrencies, traditional currencies, and precious metals all in one platform.

What are the risks of using Uphold?

Here are the main risks of using Uphold:

• Custodial risk: Like all centralized exchanges, crypto held on Uphold could be lost if the platform faces a hack or bankruptcy. 
• Account verification issues: Some users experience account freezes while providing additional documentation during enhanced Know Your Customer (KYC) verification processes
• Account-level threats: Like all cryptocurrency platforms, your Uphold exchange could be compromised through phishing attacks or malware. 

Protect yourself by enabling two-factor authentication and moving long-term crypto holdings to a hardware wallet for additional protection. 

Does Uphold report to the IRS?

Yes, Uphold follows KYC requirements and collects user identification information as part of its regulatory compliance. Starting in 2026, centralized crypto exchanges must issue Form 1099-DA to report capital gains and losses to the IRS.

Remember that you're required to report all crypto income and capital gains on your tax return, regardless of whether you receive a tax form. Crypto tax software like CoinLedger can automatically track your Uphold trades and generate crypto tax reports in minutes. 

Conclusion

Uphold offers strong security features like cold storage, two-factor authentication, and real-time 100% reserve backing. The platform has never been hacked and maintains proper regulatory licenses.