The U.S. Securities and Exchange Commission (SEC) announced that cryptocurrency platform Abra has agreed to settle charges that it failed to register its lending products, Cointelegraph reported.

On August 26, the regulator said Abra agreed to pay a court-determined civil penalty and accept an injunction to stop violating securities laws, “without admitting or denying the SEC’s allegations.” The SEC filed a lawsuit against the lending platform, alleging that it failed to register the sale and operation of Abra Earn.

The SEC alleges that Abra advertised its Earn service as a way for investors to “automatically” earn interest, but in reality it was generating income for itself. The platform began offering Abra Earn to U.S. investors in July 2020, with peak global assets of approximately $600 million.

Stacy Bogert, deputy director of enforcement at the SEC, said Abra sold its own securities by circumventing provisions of the Investment Company Act that provide many important protections for investors, including reducing conflicts of interest.