Crypto-currency platform Abra has reached an agreement with the Oregon Division of Financial Regulation, in which it will return assets held by users in the state and stop offering unregistered securities. This is the fifth state to take action against the companies that make up the Abra ecosystem.
Contravention of safety laws in Oregon
Abra was charged with violations of security laws in Oregon due to its Abra Earn and Abra Boost crypto savings and crypto augmentation accounts. The state has demanded that securities held by state users be removed from the platform. If Abra returns all assets to Oregon users on April 25, it will not be subject to a monetary penalty.
Agreement results
In Oregon, 167 Abra customers have $32,387.14 on the platform. The state of Iowa also reached an agreement with Abra and its CEO William Barhydt, who demanded the return of $6,426.90 for its approximately 39 customers. Abra avoided a penalty of $461,610.14 by fulfilling the terms of the agreement on March 6.
Previous actions
Abra was challenged in September 2023 by the Maryland Attorney General, who represented 162 Marylanders with balances totaling $700,000. The State of Texas took action against Abra in January 2024, demanding repayment of the balances from state residents. California’s Commissioner of Financial Protection and Innovation also took action in June 2023, discovering that Abra had approximately 1,600 state residents with $1.8 million in balances. The agency also asserted that Abra had been insolvent since March 2023, which had occurred in the midst of the banking crisis.
Conclusion
Abra has reached an agreement with the Oregon Division of Financial Regulation, in which it will return assets held by users in the state and cease offering unregistered securities. This is the fifth state to take action against the companies that make up the Abra ecosystem.
