🔥 Abra to Halt Services in the U.S. and Return Funds to Clients
posted 27 Jun 2024
According to the Conference of State Bank Supervisors, an investigation conducted by financial regulators across several U.S. states revealed that the cryptocurrency company Abra was offering trading and investment services without the requisite licenses.
As a result, the authorities demanded that the company cease transactions for U.S.-based Abra Trade clients and initially sought a $250,000 fine to benefit the states involved in the lawsuit.
In a settlement agreement, Abra consented to halt its services and will refund $82.1 million in virtual assets to its clients. The regulators have agreed to forego the fine to facilitate a quicker restitution of funds to the citizens.
Furthermore, Abra CEO William Barhydt has been prohibited from participating in any financial services companies for five years. He is only allowed to act as a passive investor during this time.
Previously, Abra had already faced challenges from U.S. regulators. In early 2023, the Texas government accused Abra of securities fraud and operating in insolvency, compelling the company to refund its clients and stop offering its Abra Earn and Abra Boost products.
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