US states and cryptocurrency company Abra negotiate deal over Abra’s unlicensed operations

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US states and cryptocurrency company Abra negotiate deal over Abra's unlicensed operations
US states and cryptocurrency company Abra negotiate deal over Abra's unlicensed operations

The CEO of the cryptocurrency investment platform Abra and the financial authorities in 25 U.S. states announced on Wednesday that they had reached a settlement for operating without the required state authorization.

A settlement with cryptocurrency investment platform Abra and its CEO for operating without the necessary state authorization was announced by financial authorities in 25 U.S. states on Wednesday. Abra agreed to stop allowing cryptocurrency to be purchased and traded as part of the settlement last year, according to an announcement from the Conference of State Bank Supervisors (CSBS). Abra had previously agreed to stop accepting cryptocurrency from clients with U.S. Abra Trade accounts for its products and services.

Abra said last year that it was closing its doors to retail consumers in the United States due to numerous enforcement actions brought by state securities regulators. Bill Barhydt, the CEO of Abra, has agreed to a five-year ban from participating in the operations of any money transmitter or money services company licensed in any of the 25 states, as per the conditions of the settlement that were revealed on Wednesday. Additionally, Abra will have to reimburse consumers in the 25 states up to $82.1 million. Washington, Texas, Georgia, and Ohio were among the states that consented to the settlement’s terms, namely the waiver of financial penalties in exchange for full customer repayment.

An Abra representative said in a statement, “Abra is pleased to enter into a term sheet negotiated with a working group from the Money Transmitters Regulators Association regarding the Abra App that Abra previously offered in the U.S.” The SEC-registered financial advisor Abra Capital Management is still active in the United States, according to the spokeswoman. The business is “happy that the state negotiations are behind us,” according to Barhydt.

According to a statement from Charlie Clark, director of the Washington State Department of Financial Institutions and chair of CSBS, “state financial regulators take their role to protect consumers and prevent unlicensed activity seriously.” “Businesses that operate outside the boundaries of state laws will face consequences.”

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