Crypto investment platform Abra has settled with financial regulators from 25 U.S. states for operating without the required state licenses. The regulators require Abra to stop cryptocurrency trading services for U.S. customers and return $82.1 million in virtual assets.
As part of the agreement, Abra must stop accepting cryptocurrency from U.S. customers for its Abra Trade accounts and halt all buying and trading activities.
Additionally, Abra is required to refund up to $82.1 million to customers across the 25 states involved in the settlement. These states, including Washington, Texas, Georgia, and Ohio, have agreed to reject monetary penalties to ensure full repayment to customers.
The Conference of State Bank Supervisors (CSBS) representing 50 U.S. states noted that Abra’s operations, which included a mobile application for buying, selling, trading, and investing in cryptocurrencies, were conducted without proper authorization.Â
Under the settlement terms, Abra CEO, Bill Barhydt is prohibited from participating in any money transmitter or money services business licensed in the 25 states for five years to ensure adherence to state laws and prevent future unlicensed activities.
Abra expressed satisfaction with the resolution, stating that the negotiations with the Money Transmitters Regulators Association were concluded peacefully. Abra operates in the U.S. through Abra Capital Management, an SEC-registered investment advisor.
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