The post Abra faces SEC showdown: What went behind the unregistered crypto sales? appeared on BitcoinEthereumNews.com.

SEC also accused Abra of operating as an unregistered investment company. The settlement was reached without Abra admitting to or denying the allegations. In a recent development, the United States Securities and Exchange Commission (SEC) resolved charges against Plutus Lending LLC, known as Abra, related to the unregistered sale of crypto asset securities through its lending product.  That being said, the SEC also accused Abra of operating as an unregistered investment company. How it all started The issue arose in July 2020 when Abra began offering its Abra Earn program in the U.S., allowing investors to deposit their crypto assets with a promise of earning variable interest rates. Since then, Abra Earn has been heavily marketed by Abra as a high-yield investment opportunity, attracting significant interest. At its peak, the program managed approximately $600 million in assets, with around $500 million sourced from U.S. investors. Elaborating on the same, the press release published on 26th August by the US SEC noted,  “The complaint alleges that Abra marketed Abra Earn as a means for investors to earn interest on their crypto assets “auto-magically,” and that Abra exercised its discretion to use investors’ crypto assets in various ways to generate income for itself and to fund interest payments.”  However, in June 2023, Abra started winding down the Abra Earn program and instructed its U.S. clients to withdraw their crypto assets from the platform, signaling a major shift in its operations and investor offerings.  Execs weigh in… Expressing his sentiment on the same, Stacy Bogert, Associate Director of the SEC’s Division of Enforcement said,  “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.”  Bogert further added,  “To…

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Filed under: News - @ August 28, 2024 6:18 am