SEC Settles $500 Million Unregistered Securities Case After Ripple Lawsuit
For $500 million in unregistered securities sales, SEC resolved charges against crypto lending startup Abra.
Abra did not acknowledge or reject accusations in the Ripple case, but the Judge determined that selling XRP to institutions violated securities laws.
Pro-crypto attorney Bill Morgan thinks SEC is less likely to appeal Ripple verdict after recent events.
On August 26, the SEC resolved allegations against crypto lending platform Abra. This is a major breakthrough in crypto regulation since Abra did not confirm or refute the regulator's charges and agreed to pay court-ordered civil fines.
The court found Ripple violated securities legislation by selling unregistered securities to institutional investors. Pro-crypto attorneys speculated on whether the regulator would appeal the SEC vs. Ripple verdict.
The gap between the two SEC enforcement proceedings demonstrates what US crypto dealers might anticipate from evolving regulations.
This occurred without Abra admitting or denying SEC claims.
Abra, a crypto platform, resolved SEC accusations against its Abra Earn program. The company began offering Abra Earn in 2020, promising substantial exchange returns.
The Abra Earn program has over $600 million in user assets, $500 million from the US. The SEC's news release indicates that Abra was an unregistered investment business for two years.
Abra, without admitting or denying the SEC's charges, has consented to an injunction barring it from violating the Securities Act and Investment Company Act's registration provisions and requiring it to pay court-determined civil penalties.
Unlike the SEC's enforcement action against Abra, the SEC vs. Ripple court found that institutional XRP sales violated securities laws. The company compensated without admitting guilt. In 2020, Abra resolved charges with the SEC and CFTC for $150,000 each and concluded the swaps product inquiry.
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