The post Crypto Firm Abra Settles SEC Charges, Agrees to Pay Unspecified Fine appeared on BitcoinEthereumNews.com.

The U.S. Securities and Exchange Commission (SEC) on Monday filed charges against cryptocurrency investment firm Abra—aka Plutus Lending LLC—for allegedly conducting unregistered offers and sales of crypto asset securities, and functioning as an unregistered investment company. Abra has already settled the charges related to its Abra Earn service and has agreed to pay an unspecified fine. An Abra spokesperson confirmed the settlement agreement to Decrypt and said that the Earn service was shuttered in 2022. “Without admission of wrongdoing, PLL agrees to continue to comply with securities laws. No consumers were harmed at all by the settlement or wind down of Abra Earn,” the spokesperson said. “All assets for U.S. Earn customers including accrued interest were transferred to their Abra Trade accounts in 2023. Abra continues to operate in the USA via Abra Capital Management, an SEC-registered investment advisor.” The action continues the SEC’s pattern of targeting major players in the cryptocurrency industry. According to the SEC’s complaint, Abra began offering its Abra Earn product to U.S. investors in July 2020, which allowed investors to deposit crypto assets with Abra in exchange for promised variable interest rates. At its peak, Abra Earn held approximately $600 million in assets, with nearly $500 million coming from U.S. investors. “As alleged, Abra sold nearly half a billion dollars of securities to U.S. investors, without complying with registration laws designed to ensure that investors have sufficient, accurate information to make informed decisions before they invest,” Stacy Bogert, Associate Director of the SEC’s Division of Enforcement, said in a statement. The SEC alleges that Abra marketed the product as a way for investors to earn interest “auto-magically” on their crypto assets.  The complaint states that Abra used investors’ assets at its discretion to generate income for itself and fund interest payments. The SEC also contends…

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Filed under: News - @ August 26, 2024 10:25 pm