Minjoosong
Crypto firm Abra has agreed to refund up to $82.1 million to customers in 25 U.S. states for operating without proper licenses. The settlement, announced Wednesday, prioritizes customer repayment over monetary penalties.
Abra's CEO, Bill Barhydt, is barred from financial services in these states for five years. He claimed on social media that no users were harmed, despite the substantial refund agreement.
The investigation, led by several state financial regulators, found Abra offered crypto transactions through its mobile app without required licenses. As a result, Abra halted U.S. customer transactions on its Abra Trade platform.
State regulators emphasized their commitment to consumer protection and compliance with licensing laws. Charlie Clark, CSBS Chair, stated that companies operating outside state laws will face consequences.
Meanwhile, Abra has launched new platforms - Abra Prime and Abra Private - targeting accredited investors and institutions, following recent SEC approval to act as an investment advisor.
