According to TechFlow, the cryptocurrency company Abra was accused by the U.S. Securities and Exchange Commission (SEC) of providing and selling retail crypto asset lending products, and the two parties have reached a settlement.
Abra has agreed to an injunction restraining it from violating the registration provisions of the Securities Act and the Investment Company Act and will pay a civil penalty to be determined by the court.
The SEC said that Abra's Abra Earn product, launched in 2020, managed approximately $600 million in assets at its peak, of which $500 million came from U.S. investors. The SEC accused Abra Earn of offering and selling it as a security without registering it with the SEC.
It is worth noting that the SEC did not accuse Abra of fraud or causing harm to investors. Abra began to phase out the project in June 2023 and asked US investors to withdraw their crypto assets. Currently, Abra has stopped its App service in the United States and turned to focus on serving high-net-worth individuals and institutional clients.