The crypto lender lit up to return the money in the Texas settlement
Crypto lending firm Abra — which has been in receivership since March 2023 — has reached an agreement in principle with the Texas State Securities Board (TSSB). The company will return the assets invested by the citizens of the region.
On January 22, TSSB issued the final confirmation of the settlement. According to the filing, Abra “has begun to freeze US retail operations” and will notify customers with more than $10 in their accounts so they can withdraw their funds within seven days. The unclaimed property will be converted into fiat currency and directed to the remaining Texas investors.
Abra is a group of companies controlled by crypto entrepreneur Bill Barrheid. The settlements name four different entities associated with the brand: Plutus Financial Holdings, Plutus Financial, Plutus Loans and Abra Boost.
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The brand has been offering Abra Earn and Abra Boost, where the company has profited by lending the money when users pledge to seek deposits for their digital assets. The offer is available on Abra's website stating that interest of up to 10% will be compounded daily and paid every Monday.
On June 15, 2023, the TSSB issued an emergency cease-and-desist order, alleging that Barhidt and Abra engaged in securities fraud and fraudulent sales of investment products. As of March 31, 2023, the state regulator said the company will be bankrupt or close to bankruptcy.
According to the settlement text, when the TSSB filed the actions, Abra held $13.6 million in crypto on behalf of more than 12,000 investors in the United States. Of that, only $1.8 million is owned by 1,600 Texas residents.
Company X's (formerly Twitter) account has been silenced since June 2023. Bill Barheit confirmed that Abera had “never (ever) stopped spending money on American consumers” and that he had “voluntarily wound” income and stimulus programs in 2023.
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