PANews reported on August 27 that according to The Block, the U.S. Securities and Exchange Commission (SEC) reached a settlement with Plutus Lending LLC, which does business under the name of Abra. The SEC stated that "without admitting or denying the SEC's allegations, Abra has agreed to an injunction prohibiting it from violating the registration provisions of the Securities Act and the Investment Company Act and requiring it to pay a civil penalty in an amount determined by the court." The SEC accused Abra of failing to register the offer and sale of its retail crypto asset lending product Abra Earn and operating as an unregistered investment company. According to the SEC's lawsuit, Abra used customers' digital assets to "generate income for itself and fund interest payments." Abra Earn has created nearly $600 million in crypto assets for Abra, of which $500 million came from U.S. customers. According to previous news, in June 2023, the Texas Securities Commission also filed an enforcement action against Abra and its CEO for suspected securities fraud by Abra Earn.