Tech
Cryptocurrency firm Abra reaches settlement with US states for operating without licenses
(Reuters) – Financial regulators in 25 U.S. states on Wednesday announced a settlement with cryptocurrency investment platform Abra and its CEO for operating without the required state license.
As part of the settlement, Abra agreed to stop making cryptocurrencies available for purchase and trade to Abra Trade’s U.S. customers starting June 15, the Conference of State Bank Supervisors (CSBS) said in a statement. .
Abra said last year it was shutting down operations for U.S. retail clients, after facing a series of enforcement actions from state securities regulators.
Under the terms of the settlement announced Wednesday, Abra CEO Bill Barhydt will be barred from participating in the operations or affairs of any money transmitter or money services business licensed in the 25 states for five years.
Abra will also be required to refund up to $82.1 million to customers in the 25 states. States involved in the settlement – including Washington, Texas, Georgia and Ohio – have agreed to waive fines in order for customers to be fully reimbursed.
“Abra is pleased to enter into a Term Sheet negotiated with a working group of the Money Transmitters Regulators Association regarding the Abra App which Abra previously offered in the United States,” an Abra spokesperson said in a statement.
Barhydt did not immediately respond to a request for comment.
“State financial regulators take seriously their role to protect consumers and prevent unauthorized activity,” said Charlie Clark, president of the CSBS and director of the Washington State Department of Financial Institutions, in a statement. “Companies that do not operate within the bounds of state laws will be held accountable.”
(Reporting by Hannah Lang in New York; Editing by Josie Kao)