New Jersey regulators urge crypto investors to leave Abra amid US shutdown
New Jersey officials advised investors to remove any remaining crypto holdings from Abra.
A Monday news statement said that the California-based corporation is closing its US operations. Abra was investigated by many states for operating without state money services business (MSB) registration.
According to the deal, Abra and CEO William John “Bill” Barhydt would reimburse all virtual assets on the site. The settlement also addresses charges that it offered “Abra Boost” and “Abra Earn” interest-bearing accounts in violation of state securities laws.
“The agreement announced today requires Abra to return the funds it raised through the unlawful sale of unregistered securities in our state,” said Division of Consumer Affairs interim director Cari Fais.
“We want New Jersey investors to get their funds back.”
Crypto in New Jersey accounts will be converted to USD under the deal. Checks above $10 are issued. The platform will keep smaller amounts for withdrawal. Unclaimed cash will also go to the New Jersey Treasury's Unclaimed Property Administration. Abra must notify New Jersey consumers of asset withdrawals.
Abra Refunds $82M to 25 States for Licensing Violations
Texas securities authorities are probing Abra's interest-bearing accounts. Abra and its CEO were sued by various jurisdictions, including New Jersey, in June 2023. Abra suspended its US activities.
New Jersey investors have $200,000 in cryptocurrencies on the site, but most consumers have withdrawn.
Abra and its CEO settled with 25 states in June for licensing violations. Abra agreed to refund $82.1m to clients in eight states. States waived fines to prioritize consumer refunds.
