Texas regulator says Abra secretly moved funds to Binance, has been insolvent for months
The Texas Securities Commission filed an emergency cease and desist order on Thursday. June 15th For cryptocurrency lending company Abra.
In the order, the regulator said an investigation found that Abra and its affiliates committed fraud and made misleading statements.
Regulators have said that Abra and its companies do not actually have a Texas banking license, are not licensed to operate in Texas, and do not offer FDIC deposit insurance. He said he made misleading statements as if the company was a “cryptocurrency bank.”
The Securities Commission further said that Abra and related parties had “secretly” transferred their stakes to Binance.com, holding more than $118 million on the platform as of February 2023. Stated. Abra said it failed to disclose its commodity futures trading with the U.S. Securities and Exchange Commission. The Trade Commission has filed ongoing lawsuits against Binance and related parties, thereby misleading customers.
In today’s filing, the regulator described numerous other instances in which Abra made fraudulent and misleading statements.
It also said that an investigation on March 31, 2023 found that various Abra parties were “collectively in bankruptcy or near bankruptcy.”
Abra was ordered to stop and stop
The filing orders Abra’s various companies and CEOs to stop making fraudulent solicitations and misleading statements in Texas. It also wants Abra and his associates to pay fines and return the money to his clients.
The regulator did not specify how Abra’s services should change. Abra Earn was canceled in October 2022 during a TSSB investigation. Abra Boost remains available to US accredited and institutional investors
The filing lists Plutus Financial, which does business as Abra, as well as Abra Boost LLC and Abra CEO Bill Barhydt, as targets of the order.
Abra and Barhyde have not publicly responded to the complaint. The company did not respond to CryptoSlate’s request for comment at the time of writing.
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