The Texas State Securities Board Settles with Abra to Enable US Investors to Withdraw Assets
The Texas State Securities Board has reached a settlement in principle with Abra and its CEO, Bill Barhydt. This settlement will allow investors in the United States to withdraw their assets from the crypto platform. Abra had previously closed its services in the country following enforcement action by the state. Abra is a group of four affiliated companies controlled by Barhydt that offered interest-bearing programs called Abra Earn and Abra Boost.
Settlement Terms
Under the settlement, Abra is required to notify users with balances exceeding $10 and grant them a seven-day withdrawal period. Any unclaimed assets will be converted to fiat currency and sent to remaining Texas investors. Abra has 30 days to fulfill these obligations.
Previous Enforcement Action
In June 2023, Texas officials filed an emergency cease and desist order against Abra and Barhydt for securities fraud related to their programs. The state alleged that Abra hid financial troubles and was nearing insolvency. At the time of the enforcement action, Abra held around $13.6 million worth of cryptocurrencies from over 12,000 U.S. investors.
Dismissal of Actions
As part of the settlement in principle, the Texas State Securities Board will dismiss actions filed against Abra on or after June 15, 2023.
Hot Take: Texas State Securities Board Settles with Abra to Protect Investors’ Interests
The recent settlement between the Texas State Securities Board and Abra demonstrates the board’s commitment to protecting investors’ interests. By enabling U.S. investors to withdraw their assets from the crypto platform, the board ensures that investors have control over their funds. The settlement terms, including the notification and withdrawal period requirements, provide additional safeguards for investors. This resolution also holds Abra accountable for any potential securities fraud committed through their interest-bearing programs. Overall, this settlement is a positive step towards maintaining a fair and transparent crypto market in Texas.
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