The New Jersey Attorney General has urged state investors to withdraw funds from the crypto lending and trading platform Abra as the company winds down its U.S. operations following a multistate investigation into the sale of unregistered securities.
In an Aug. 12 statement, A.G. Matthew Platkin advised New Jersey investors that have accounts with the California-based crypto company to quickly reclaim their assets before the company exited the U.S. market.
Attention NJ investors! Did you invest in Abra Earn or Abra Boost accounts? Do you have crypto assets remaining on the Abra platform? Click here to learn how our settlement with Abra over #securities violations can help you: https://t.co/fbJ0Z7TDfQ pic.twitter.com/h4Ld8eFgY1
— Attorney General Matt Platkin (@NewJerseyOAG) August 12, 2024
Platkin’s warning follows a settlement in principle between the Abra platform, its chief executive, William Barhydt, and the New Jersey Bureau of Securities.
The settlement addressed allegations that Abra illegally sold investors interest-bearing crypto accounts, known as Abra Boost and Abra Earn, with New Jersey residents buying nearly $3 million worth of the products.
As part of the settlement, the crypto company is required to give back to investors all their crypto assets remaining on the platform. According to the A.G.’s statement, the funds will be converted to U.S. dollars, and refund checks will be issued for amounts of $10 or more.
However, for balances below $10, investors can withdraw directly through the Abra app. Any unclaimed funds will then be transferred to the New Jersey Department of the Treasury’s Unclaimed Property Administration.
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Following the enforcement actions, Abra initiated the wind-down of its U.S. retail operations. The settlement is the result of a coordinated effort led by a working group of state securities regulators, including the Texas State Securities Board.
Investigation into the crypto company began in mid-2023 and focused on Abra’s offerings and the legality of its financial products.
At the time, the TSSB took legal action against Abra, accusing the company of deliberately hiding important financial information, including party capitalization, loan defaults, operating history, and asset transfers to platforms like Binance.
Following months of investigation, Abra reached a settlement with TSSB, allowing users of the platform to withdraw their funds. Similar to the recent New Jersey settlement, Abra users in Texas with more than $10 in assets were issued checks, while those holding less than that amount could withdraw directly from the Abra app.
About 12,000 Texans had invested as much as $13.6 million in Abra’s financial products, including Abra Boost and Abra Earn.
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