Abra Settles Licensing Issues with 25 U.S. States

Cryptocurrency platform Abra and its CEO reach a settlement with state regulators over licensing violations, impacting multiple states.
Abra Settles Licensing Issues with 25 U.S. States

Cryptocurrency platform Abra, along with its associated companies and CEO William Barhydt, has reached a settlement with 25 U.S. states for operating without proper licenses. The settlement follows an investigation led by regulators from eight states, including Arkansas, Connecticut, Georgia, Ohio, Oregon, Texas, Vermont, and Washington, which found Abra operated an unlicensed mobile app for buying, selling, and trading crypto.

The settlement requires Abra to repay up to $82.1 million to customers and prohibits Barhydt from participating in licensed money transmitter or money services business activities in the involved states for five years. Abra will return all remaining virtual assets to customers in the settling states.

This agreement follows previous regulatory actions against Abra, including a $300,000 fine from the SEC in 2020 and a cease-and-desist order from Texas regulators in June 2023. Abra halted U.S. operations for its trading services on June 15, 2023.

The participating states include Alaska, Alabama, Arizona, Arkansas, Connecticut, District of Columbia, Georgia, Idaho, Iowa, Maine, Minnesota, Mississippi, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oregon, Rhode Island, South Carolina, South Dakota, Texas, Vermont, Washington, and West Virginia. Other states may join the settlement as it concludes.

Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.

Crypto Insider News Inc