Settlement Overview
In a landmark agreement with Texas securities regulators, the cryptocurrency platform Abra has paved the way for users to withdraw their funds. This resolution comes after a period of regulatory scrutiny, ensuring that Abra’s operations align with existing securities legislation.
Terms of Agreement
The settlement dictates that Abra is to provide instruments such as checks or secure bank transfers to customers holding over $10 in assets on the platform. This move addresses the Texas State Securities Board’s concerns, which came to light when it was discovered that Abra managed around $13.6 million in crypto assets for nearly 12,000 clients.
Regulatory Compliance
Texas Securities Commissioner Travis J. Iles has reiterated the importance of applying existing securities laws to both conventional financial products and those emerging from new technologies. Commissioner Iles stated, “Existing securities laws are well equipped to protect investors purchasing traditional products such as stocks or bonds as well as new and innovative securities tied to digital assets and evolving technologies.”
CEO’s Commitment
Abra’s CEO, William Barhydt, has expressed commitment to the agreement through a public statement on Twitter. The settlement includes a 30-day period for Abra and Barhydt to meet their obligations, with plans for any remaining crypto assets to be converted to fiat currency and returned to investors in Texas.
Compliance and Future Operations
As part of the settlement, Barhydt is required to appoint a chief compliance officer for any entity he controls that provides investment advice or securities. This decision follows a previous cease and desist order relating to misleading statements concerning Abra Earn’s investment offers and reflects the company’s commitment to regulatory compliance in the wake of industry upheavals, such as the FTX collapse.
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