Summary
The Texas State Securities Board has reached a settlement in principle with Abra and its CEO, Bill Barhydt, over allegations of securities fraud. As part of the settlement, Abra will notify users with balances exceeding $10 and provide them with a seven-day withdrawal period. Unclaimed assets will be converted to fiat currency and sent to remaining Texas investors. Abra has 30 days to fulfill its obligations. The settlement will result in the dismissal of actions filed against Abra since June 15, 2023. At the time of the enforcement action, Abra had around $13.6 million worth of cryptocurrencies from over 12,000 U.S. investors.
Key Points
1. The Texas State Securities Board has reached a settlement in principle with Abra and its CEO, Bill Barhydt. Abra is required to notify users with balances exceeding $10 and allow them a seven-day withdrawal period. Unclaimed assets will be converted to fiat currency and sent to remaining Texas investors.
2. Texas officials had previously filed an emergency cease and desist order against Abra and Barhydt, accusing them of securities fraud related to Abra Earn and Abra Boost. The board alleged that Abra hid financial troubles and transferred funds to Binance while nearing insolvency.
3. At the time of the enforcement action, Abra had over $13.6 million worth of cryptocurrencies from U.S. investors. However, the current balance as of the settlement is less than $500,000. The settlement agreement also includes the dismissal of actions filed against Abra after June 15, 2023.