Cryptocurrency platform Abra, associated companies and its CEO William Barhydt have reached an agreement with 25 US states to operate without proper licenses. The settlement came after a working group of regulators from eight states conducted an investigation into the company.

Financial regulators in Arkansas, Connecticut, Georgia, Ohio, Oregon, Texas, Vermont and Washington determined that Abra was trading crypto through an unlicensed mobile app. Under the agreement, states will not seek penalties of $250,000 each to cover the cost of customer refunds. Up to $82.1 million and any remaining virtual assets will be returned to Abra customers in states that entered into the agreement.

Barhydt, Abra's principal shareholder, agreed not to engage in any licensed money transfer or money services business activities in the states other than as an investor for five years.

Other states may join the settlement “as the litigation plays out.” “Abra is pleased to enter into a Memorandum of Agreement on the Abra App being negotiated with a working group from the Association of Money Transfer Regulators,” an Abra spokesperson said in a statement sent to Reuters.

Abra first attracted suspicion from state securities regulators, which led to a parallel investigation. That investigation led to the recovery of $13.6 million for Abra customers, according to a statement released by the Washington State Department of Financial Institutions.

Abra hasn't been in trouble with the Securities and Exchange Commission, which fined Abra $300,000 for trading in synthetic assets in 2020. Texas regulators issued an emergency cease and desist order against Abra in June 2023, claiming the company was bankrupt. Abra Kazan and Abra Boost customers received their funds back following a settlement with the state of Texas.