Cryptocurrency

United

April

Fine

Cryptocurrency platform Abra and its CEO William Barhydt reached a settlement with the Oregon Division of Financial Regulation, under which it will return assets held by Oregon users on the platform and cease and desist from offering unregistered securities in the state. This is the latest step in the United States-based company’s withdrawal from the U.S. market.
Oregon is at least the fifth state to take action against the companies that make up the Abra ecosystem. The state of Oregon charged Abra with violations of state securities laws in connection with its interest-bearing crypto depository accounts Abra Earn and Abra Boost. It <a href="https://dfr.oregon.gov/news/news2024/Pages/20240327-cryptocurrency-settlement.aspx" target="_blank" rel="noopener nofollow">required</a> Abra to advise all account holders in the state to remove their crypto assets from the platform. If it succeeds in returning all assets to Oregon customers by April 25, it will not be subject to a monetary penalty.
In Oregon, 167 Abra customers have $32,387.14 on the platform. The state of Iowa settled with Abra and its CEO in February, and Abra agreed to return $6,426.90 to its approximately 39 customers in that state. It would avoid a penalty of $461,610.14 by fulfilling the conditions of the settlement by March 6. 
Related: <a href="https://cointelegraph.com/news/sec-and-cftc-fine-crypto-investment-app-for-offering-synthetic-assets">SEC and CFTC Fine Crypto Investment App for Offering Synthetic Assets</a>
Maryland took action against Abra in September 2023 on behalf of 162 Marylanders with balances totaling $700,000. Maryland Attorney General Anthony Brown <a href="https://www.marylandattorneygeneral.gov/press/2023/090623b.pdf" target="_blank" rel="noopener nofollow">stated</a> in the announcement:
<blockquote>
 “Maryland has been participating in a working group of state securities regulators focused on interest-bearing crypto asset accounts.” 
</blockquote>
This past January, Abra <a href="https://cointelegraph.com/news/abra-texas-settlement-repayment-crypto-lender">agreed in a settlement with</a> the Texas State Securities Board to repay state residents their balances on the platform. That was the second action Texas had taken against Abra. In a June 2023 enforcement action, the Texas agency <a href="https://cointelegraph.com/news/abra-insolvent-since-march-texas-securities-regulator-cease-desist">found that Abra had</a> approximately 1,600 state residents on its platform with a balance of $1.8 million. It also claimed that Abra has been insolvent since March of that year, which was during the height of the banking crisis.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-03/13c8ba06-1d97-4e5a-bca8-fdf148725695.png">
 <figcaption style="text-align: center;">
 Source: Bill Barhydt
 </figcaption>
</figure>
The California Commissioner of Financial Protection and Innovation <a href="https://dfpi.ca.gov/wp-content/uploads/sites/337/2023/05/Consent-Order-Plutus-Financial-Inc.pdf" target="_blank" rel="noopener nofollow">issued</a> a consent decree in April 2023 requiring Abra to close out Californians’ Earn accounts, worth $19 million.
Abra <a href="https://www.abra.com/blog/update-on-availability-for-us-customers/" target="_blank" rel="noopener nofollow">said</a> in a blog post in July that it was ending retail operations in the United States.
Magazine: <a href="https://cointelegraph.com/magazine/crypto-home-loan-bitcoin-mortgage-risky/">Home loans using crypto as collateral: Do the risks outweigh the reward?</a>

Abra settles with fifth state as US operations may be winding down

Cointelegraph

Other articles published on Mar 28, 2024

Unlock Monero Mining Secrets: Ultimate XMR Mining Guide for 2024

Indonesia to Enforce Strict Crypto Regulation in 2025

Litecoin’s Price Surge: What’s Driving the Rally?

Top Analyst Says Blue Chip Ethereum Rival Eyeing Fresh 2024 Highs, Updates Outlook on Bitcoin and...

Shiba Inu Lead Dev Tells Ethereum Founder, ‘It’s Just The Start’, Here’s Why

CEO of BlackRock Optimistic About Bitcoin; ETF Surpasses $17 Billion Mark

Join our free newsletter for daily crypto updates!