Cryptocurrency firm Abra has reached a settlement with 25 US state financial regulators for operating a cryptocurrency company without state licenses. The states took collective action against the firm, its subsidiaries, and CEO William Barhydt. The firm will return about $82 million worth of digital assets to customers.
Abra Enters Settlement With 25 States
In a June 26 press statement, the Conference of State Bank Supervisors (CSBS) announced the settlement following the collective action taken against ABRA and its CEO. According to the release, state financial regulators from Georgia, Texas, Ohio, Vermont, etc carried out an investigation and discovered Abra carried out crypto services which included buying, selling, and investing without a license.
Charlie Clark CSBS Chair reiterated the obligation of state regulators to protect financial consumers and investigate firms.
“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.”
As part of the agreement, Barhydt will be barred from participating in any capacity in the business in states where the settlement occurred. However, he can become a passive investor.
Company To Refund Customers
Per the settlement, Abra will refund digital assets in its platform for US Abra Trade customers. This will lead to about $82.1 million in crypto assets returned to users in states involved in the settlement.
“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.”
Timi facilitates user repayments, states involved agreed to waive the fine of $250,000 per jurisdiction as penalties for operating the platform with the required license. This adds to the list of US regulatory cases in the United States as authorities ramp up efforts citing consumer protection.
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David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
