Abra, a cryptocurrency corporation, and 25 US state financial regulators have struck a settlement over Abra’s operation of a cryptocurrency business without state licenses. The states collectively took action against the company, its affiliates, and William Barhydt, the CEO. The company will give its clients back digital assets valued at around $82 million.
Abra Signs Settlement With Twenty-Five States
Following collective action against ABRA and its CEO, the Conference of State Bank Supervisors (CSBS) announced the settlement in a press release on June 26. According to the announcement, state financial authorities from Georgia, Texas, Ohio, Vermont, and other states conducted an investigation. They found that Abra provided crypto services like purchasing, selling, and investing without a license.
CSBS chair Charlie Clark reaffirmed that state regulators have a duty to investigate companies and protect financial consumers.
“State financial regulators take their role to protect consumers and prevent unlicensed activity seriously. Companies that do not operate within the bounds of state laws will be held accountable.”
The agreement prohibits Barhydt from participating in the business in any way in the states where the settlement was reached. He could, nonetheless, become a passive investor.
Company Will Give Customers Their Money Back
Abra will reimburse US Abra Trade clients for digital assets on its platform following the settlement. This will restore roughly $82.1 million in cryptocurrency holdings to users in the settlement’s participating states.
“Once the remaining virtual assets are returned pursuant to the settlement terms, up to $82.1 million will be paid back to consumers. The investigation and settlement took place in conjunction with a separate investigation by state securities regulators.”
In exchange for states agreeing to waive a $250,000 fee per jurisdiction for running the site with the necessary license, Timi helps users repay their loans. As authorities step up efforts citing consumer protection, this adds to the list of US regulatory proceedings in the US.
