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27/06/24
133
Abra Agrees to a Settlement with 25 States in the U.S.
Abra, its associated firms and CEO William Barhydt have settled with twenty-five states in the United States for operating without receiving the necessary licenses. This comes after several regulators from eight states, including Arkansas, Connecticut, Georgia, Ohio, Oregon, Texas, Vermont and Washington, investigated the firm.
According to the findings of the regulators, the firm operated an unlicensed mobile app allowing people to buy, sell and trade cryptocurrency. The negotiation of the settlement was led by Washington regulators and includes an agreement to stop accepting virtual asset allocations from United States Abra Trade Account customers into their products and services and stop making, buying, selling, or trading crypto available to them as of June 15, 2023.
The firm is also required to refund any remaining virtual assets on its platform for U.S. Abra Trade customers in the settling states. The firm will not pay a monetary penalty of $250k per jurisdiction, as the states involved in the settlement want Abra to repay customers. Customers will be paid back up to $82.1 million.
Barhydt will no longer participate in any licensed or required to be licensed money transmitter or money services in the states where he reached a settlement other than as a passive investor for 5 years.
“State financial regulators take their role to protect consumers and prevent unlicensed activity seriously. Companies that do not operate within the bounds of state laws will be held accountable,” said CSBS Chair and Washington State Department of Financial Institutions Director Charlie Clark.
The states currently participating in the settlement are 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.
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