Crypto Company Abra Agrees to $82M in Customer Refunds Following Unlicensed Mobile App
Abra, a cryptocurrency platform, has reached a settlement with regulators in 25 US states and its CEO for operating the necessary licenses. As part of the settlement announced on Wednesday, Abra will compensate customers in these states up to $82.1 million. Monetary penalties were waived by the states to prioritize customer repayment.
The settlement also imposes restrictions onra’s CEO, Bill Barhydt, prohibiting his involvement in money transmission or similar services within the 25 states for five years.
Barhydt tried to minimize the impact of the deal by stating that “no penalties are paid as part of this agreement as no users were harmed in any way.”
Consequences for Unlicensed Crypto Services
Last year, financial regulators from several conducted an investigation into Abra after discovering that it was offering crypto transactions through its mobile without proper licenses. States such as Washington, Arkansas, Georgia, and Texas were among those involved.
To address these issues,
Abra halted US customer activity on its Ab Trade platform buying, selling, and depositing crypto. The recent settlement now requires Abra to return any remaining cryptocurrency to affected customers in these states.
“State financial regulators take their role when it comes to protecting consumers and preventing unlicensed activity,” said Charlie Clark, CSBS Chair. “Companies that operate outside state laws will be held accountable.”
Abra Expands Platforms for Accredited Investors
In an effort to expand its reach,
Abra introduced “Abra Prime” and “Abra Private”
platforms earlier this year.
Abra Private caters specifically to high-net-worth individuals and trusts by offering custom wealth management solutions. On the other hand
