#BecomeACreator #XRPGoal After Ripple lawsuit, SEC settles charges for sale of nearly $500 million in unregistered securities
âą SEC filed settled charges against Abra, a firm that runs a crypto lending business, for $500 million sale of unregistered securitiesÂ
⹠In the Ripple case the Judge ruled that sale of XRP to institutions was a securities violation, but Abra did not admit or deny charges
âą Pro-crypto attorney Bill Morgan says SEC is less likely to appeal the Ripple ruling, per recent developments
Securities & Exchange Commission (SEC) settled charges against Abra, a crypto lending platform on August 26. This marks an important development in the crypto regulatory landscape since Abra did not admit or deny the regulatorâs allegations and agreed to pay civil penalties determined by the court
In the Ripple lawsuit, the court determined that the payment remittance firm violated securities law through the sale of unregistered securities to institutional investors. Pro-crypto lawyers shared their thoughts on the likelihood of the regulator appealing the final ruling in the SEC vs. Ripple lawsuit
The difference between the two enforcement actions by the SEC shows what crypto traders in the US can expect from the changing regulatory landscape.Â
Abra does not admit or deny SEC allegations, hereâs what happened
Abra is a crypto platform that recently settled charges brought by the SEC, against its Abra Earn product. Starting 2020, the firm offered Abra Earn to customers and promised high returns
The Abra Earn program had nearly $600 million in user assets, of which $500 million was from the US. The SECâs press release states that Abra operated as an investment company without registration for at least two years
The press release reads
To settle the Commissionâs charges, Abra, without admitting or denying the SECâs allegations, has consented to an injunction prohibiting it from violating the registration provisions of the Securities Act and the Investment Company Act and requiring it to pay civil penalties in amounts to be determined.