Markets
Abra settles with 25 states to return $82.1 million in crypto assets
Crypto investment platform Abra has reached a settlement with financial regulators in 25 US states for operating without required state licenses. Regulators are demanding that Abra cease its cryptocurrency trading services for US customers and return $82.1 million in virtual assets.
As part of the agreement, Abra must stop accepting cryptocurrencies from US customers for its Abra Trade accounts and cease all purchasing and trading activities.
Additionally, Abra must repay up to $82.1 million to customers in the 25 states involved in the settlement. These states, including Washington, Texas, Georgia and Ohio, have agreed to reject monetary penalties to ensure customers are fully reimbursed.
THE Conference of State Bank Supervisors (CSBS) representing 50 states in the United States, noted that Abra’s operations, which included a mobile application for buying, selling, trading and investing in cryptocurrencies, were conducted without proper authorization.
Under the terms of the settlement, Abra CEO Bill Barhydt is prohibited from participating in any licensed money transfer or money services business in the 25 states for five years to ensure compliance with state laws. State and prevent future unlicensed activities.
Abra expressed satisfaction with the resolution, saying negotiations with the Money Transfers Regulators Association were concluded peacefully. Abra operates in the United States through Abra Capital Management, an SEC-registered investment advisor.
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