Financial Regulators in 25 U.S. States Reach Settlement with Cryptocurrency Investment Platform Abra and CEO

Financial regulators in 25 U.S. states have reached a settlement with cryptocurrency investment platform Abra and its CEO for operating without required state licensing. The settlement, announced on Wednesday, comes after Abra agreed to stop accepting crypto from U.S. customers into its products and services and to halt making cryptocurrencies available for buying and trading.

Abra faced enforcement actions from state securities regulators, leading to a decision to wind down operations for U.S. retail customers last year. As part of the settlement, Abra CEO Bill Barhydt will be barred from participating in the business or affairs of any licensed money transmitter or money services business in the 25 states for five years.

Additionally, Abra will be required to refund up to $82.1 million to customers in the 25 states, with several states foregoing monetary penalties in order to ensure full repayment to customers. An Abra spokesperson expressed satisfaction with the negotiated settlement and highlighted that the platform continues to operate in the U.S. through Abra Capital Management, an SEC-registered investment advisor.

Company CEO Bill Barhydt expressed relief that the state negotiations had come to a close, while CSBS Chair Charlie Clark emphasized the importance of enforcing state laws to protect consumers and prevent unlicensed activity.

This settlement serves as a reminder that financial regulators are vigilant in ensuring compliance with laws and holding companies accountable for operating within legal bounds. Abra’s case underscores the challenges and consequences that businesses in the cryptocurrency space may face when operating without proper licensing.