The company will repay Texas consumers who used the platform before it fell
Cryptocurrency lending firm Abra, which went belly-up in March 2023, has entered into an agreement in principle with the Texas State Securities Board (TSSB) to return the assets of the Texas citizens.
The TSSB released the final compensation verification on January 22, which states that Abra “began winding down US retail operations” and will advise clients holding over $10 in their balances so assets can be withdrawn in seven days. The unclaimed funds will be transformed into fiat currency and ushered to remaining investors in Texas.
Abra is made up of several companies headed by crypto entrepreneur Bill Barhydt. Four separate entities linked to the brand were named in the settlement: Abra Boost, Plutus Financial Holdings, Plutus Lending and Plutus Financial.
Users of Abra Earn and Abra Boost were promised interest on digital asset deposits, while the company profited by lending out customer funds. Abra maintains the offer on its website, declaring that up to 10% of interest is compounded daily and paid to investors each Monday.
The TSSB issued an emergency cease and desist order to Barhydt and Abra on June 15, 2023, accusing them of securities fraud and committing deception concerning the sale of investment products. The agency also argues that the firm was at least nearly insolvent as of March 31, 2023.
Settlement documents indicate that Abra held $13.6 million in crypto from over 12,000 investors in the US before the TSSB filed the actions. Only $1.8 million of the assets were owned by about 1,600 Texas residents.
Barhydt recently confirmed the pending settlement, underlining that Abra “has never (ever) frozen withdrawals for US users” and “voluntarily wound down” its Earn and Boost programs in 2023.
