Crypto exchange Abra has agreed to pay a fine to the Securities and Exchange Commission (SEC) to settle allegations that they offered unregistered securities.
Abra Earn: The Problem Product
The SEC claims that Abra’s “Abra Earn” product, which allowed users to earn interest on their crypto holdings, was actually an unregistered security. Abra Earn attracted around $600 million in assets at its peak.
The SEC also accused Abra of operating as an unregistered investment company, saying they held a large portion of their assets in investment securities.
No Admission of Guilt, But a Big Fine
Abra settled with the SEC without admitting or denying the allegations. They will pay a civil penalty, but the exact amount hasn’t been decided yet.
State Regulators Also Get Involved
In June, Abra also settled with regulators in several states, including Arkansas, Connecticut, Georgia, Ohio, Oregon, Texas, Vermont, and Washington. These state regulators had accused Abra of operating without proper licenses. Abra was fined $250,000 per state and ordered to return up to $82.1 million in crypto assets to customers.
Remember: This is just a summary of the situation. It’s important to do your own research before investing in any crypto products.
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