Abra Reaches Settlement with Texas Regulators
Crypto investment platform Abra has reached a settlement in principle with Texas securities regulators, which includes allowing customers to withdraw their assets. The company had previously been accused of deceiving customers and violating securities laws with its interest-bearing products.
Abra to Return Crypto Assets to Investors
The Texas State Securities Board (TSSB) announced the settlement with Abra, which requires the company to notify clients with balances over $10 and give them seven days to withdraw their assets. Any unclaimed assets will be converted to fiat and sent to Texas investors. Abra has 30 days to fulfill these obligations.
The TSSB’s Enforcement Director, Joe Rotunda, emphasized the importance of returning money to retail investors and stated that the agency is ready to assist Texans throughout the process.
No Frozen Withdrawals, Says Abra CEO
Abra CEO William Barhydt confirmed the settlement on Twitter and clarified that the company did not freeze withdrawals for US customers. He also mentioned that Abra worked with regulators over several months to ensure compliance.
TSSB’s Cease and Desist Order Against Abra
In June 2023, the TSSB filed an emergency cease and desist order against Abra and Barhydt, alleging securities law violations and deception of investors through their interest-bearing products. The regulator claimed that Abra concealed financial information and made secret transfers to Binance. At the time of the order, Abra held approximately $13.6 million worth of crypto assets belonging to US customers.
Hot Take: Resolution for Abra and Its Customers
Crypto investment platform Abra has reached a settlement with Texas securities regulators after being accused of deceiving customers and violating securities laws. The settlement requires Abra to allow customers to withdraw their assets and return any unclaimed assets to Texas investors. This resolution prioritizes returning money to retail investors, ensuring their financial well-being. Abra CEO William Barhydt confirmed the settlement and clarified that withdrawals were not frozen for US customers. This settlement marks an important step towards resolving the regulatory issues faced by Abra and providing a fair outcome for its customers.
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