Financial regulators from 25 U.S. states announced on Wednesday a settlement with cryptocurrency investment platform Abra and its CEO, Bill Barhydt, for operating without required state licensing. The settlement follows Abra’s agreement last year to cease accepting crypto from U.S. Abra Trade account customers and to halt cryptocurrency buying and trading services.
Under the terms of the settlement, Bill Barhydt is prohibited from involvement in the operations of any licensed money transmitter or money services business in the 25 states for five years. Additionally, Abra is mandated to refund up to $82.1 million to customers across the affected states, a sum that includes amounts waived by states to ensure full customer reimbursement.
In response to the settlement, an Abra spokesperson expressed satisfaction with the negotiated Term Sheet with the Money Transmitters Regulators Association, highlighting Abra’s continued U.S. operations through Abra Capital Management, an SEC-registered investment advisor.
Bill Barhydt commented on the conclusion of state negotiations, stating, “We are pleased that the state negotiations are behind us.” CSBS Chair Charlie Clark emphasized the importance of enforcing state laws to protect consumers from unlicensed financial activities, reaffirming the commitment of financial regulators to hold companies accountable for compliance.
The settlement marks a significant regulatory outcome in the cryptocurrency sector, underscoring the rigorous enforcement of state financial regulations in the United States.
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