Abra Settles with 25 U.S. States Over Licensing Violations

Abra, a cryptocurrency investment platform, has reached a settlement with financial regulators from 25 U.S. states regarding its operation without the required state licenses. The Conference of State Bank Supervisors (CSBS) announced that Abra and its CEO, Bill Barhydt, have agreed to several terms to resolve the matter.

As part of the settlement, Abra will refund up to $82.1 million to customers in the 25 states involved, including Washington, Texas, Georgia, and Ohio. These states have agreed to forgo monetary penalties to ensure customers are fully repaid. Additionally, Barhydt will be prohibited from participating in the business or affairs of any licensed money transmitter or money services business in these states for five year

The settlement follows Abra's decision last year to cease accepting cryptocurrency from U.S. customers into its products and services. This decision came after facing numerous enforcement actions from state securities regulators. Despite these challenges, Abra continues to operate in the U.S. through Abra Capital Management, an SEC-registered investment advisor.

An Abra spokesperson expressed satisfaction with the resolution, stating, "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." Barhydt also noted, "We are pleased that the state negotiations are behind us."

CSBS Chair and Washington State Department of Financial Institutions Director Charlie Clark emphasized the importance of regulatory compliance, saying, "State financial regulators take their role to protect consumers and prevent unlicensed activity seriously. Companies that do not operate within the bounds of state laws will be held accountable."