Cryptocurrency Firm Abra Settles With 25 US States Over Licensing Violations

Financial authorities in 25 U.S. states have reached a settlement with the cryptocurrency investment platform Abra and its CEO Bill Barhydt for operating without proper licensing. This settlement mandates significant changes in how Abra conducts its operations within these states.

Abra Reaches Settlement Over Unlicensed Operations, Agrees to Major Concessions

According to a report from Reuters, the Conference of State Bank Supervisors (CSBS) announced on Wednesday that as part of the agreement, Abra will cease offering cryptocurrencies for purchase and trading to its U.S. retail customers starting June 15. This action follows a series of enforcement activities directed at Abra by state regulators over the past year, pointing to a systemic wind-down of its services for U.S. retail clientele.

The announcement comes after the Texas State Securities Board revealed in January that it has reached a preliminary settlement with Abra and Bill Barhydt. Reuters reports that under the settlement terms, Abra’s CEO, Barhydt, will be barred from participating in the management or affairs of any licensed money transmitter or money services business in the implicated states for the next five years.

Additionally, Abra is compelled to refund up to $82.1 million to affected customers across these states, including Washington, Texas, Georgia, and Ohio. The involved states have decided to waive monetary penalties to ensure full repayment to consumers. In the report on Wednesday, CSBS Chair and Washington State Department of Financial Institutions Director, Charlie Clark, emphasized the commitment of state regulators to uphold consumer protection and enforce licensing laws strictly.

“Companies that do not operate within the bounds of state laws will be held accountable,” Clark stated.

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