#AbraSettlement #CryptoRegulation #TexasSecuritiesBoard #CryptoAssets #CryptoLending #AbraEarn #CryptoInvestment #USCryptoMarket
Crypto lender Abra arrives at a settlement with the State Securities Board in Texas, agreeing to the release of frozen customer funds. As of the latest disclosure, the company reportedly holds about $13.6 million in crypto assets, which belong to nearly 12,000 investors. This settlement follows a back-and-forth between the regulatory body and Abra, with the company’s financial conduct under scrutiny.
According to the terms of the settlement, Abra account holders with a balance surpassing $10 will receive specific details concerning the withdrawal procedure, which has a timeline of seven days. Any unclaimed funds will be converted into US dollars and subsequently sent to the Texan investors via checks. Further stipulations of this settlement mandate Abra to complete all procedures linked to this agreement within a month’s duration. This move illustrates the increasing regulatory oversight within the crypto lending sector, with an emphasis on safeguarding retail investors.
Abra, which was established by William Barhydt in 2014, offers cryptocurrency trading, lending, and borrowing services to both retail and institutional investors. Interestingly, this online platform provides investors with the opportunity to participate in Abra Earn and Abra Boost, even though allegations of misleading statements have been made against these offerings. The interest rate the platform presents is 10 percent. The State Securities Board in Texas initiated actions against Abra in mid-2023, accusing the company of being insolvent from at least March 31, 2023 and of making deceptive statements to investors. The recent settlement has dismissed the previous charges against the company and its founder. Abra is now winding down its retail operations in the U.S, which has been sped up due to the latest settlement. The company joins a growing list of crypto lenders facing legal actions from U.S regulators, including firms like BlockFi and Nexo who have also recently paid substantial regulatory fines.
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