Regulators in Texas had been investigating Abra and its founder William Barhydt since mid-2023. They alleged that the company had been insolvent since at least March 31, 2023, and accused Abra of misleading Texas residents who participated in the Abra Earn program. The program offered an interest rate of 10% on invested funds.
“Investing in cryptocurrencies can lead to significant financial losses, impacting retirement plans, college savings, and bill payments. That’s why our priority is to return funds to retail investors,” said Joe Rotunda, the Compliance Director of the Texas Securities Exchange Board.
Abra, established by William Barkhite in 2014, will have lawsuits against it and its founder dismissed as part of the settlement. Additionally, Abra has decided to discontinue its retail operations in the US. In recent years, the platform raised $55 million in funding and launched Abra Bank, the first regulated US crypto bank providing traditional services to the crypto industry.