Cryptocurrency platform Abra, along with its affiliated companies and CEO William Barhydt, has reached a settlement with 25 U.S. states for operating without the necessary licenses. This settlement follows an investigation led by regulators from eight states.
Financial regulators from Arkansas, Connecticut, Georgia, Ohio, Oregon, Texas, Vermont, and Washington found that Abra operated an unlicensed mobile app for buying, selling, and trading cryptocurrency.
### Collaborative Efforts Yield Benefits for Many States
The Conference of State Bank Supervisors (CSBS) announced that Washington led the group in negotiating the settlement. As part of the agreement, the states will not impose penalties of $250,000 each to cover customer repayment costs. Instead, up to $82.1 million and all remaining virtual assets will be returned to Abra customers in the participating states.
William Barhydt, Abra’s primary equity holder, has agreed not to engage in any licensed money transmitter or money services business activities, except as an investor, in the involved states for the next five years.
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The states currently participating in the settlement include Alaska, Alabama, Arizona, Arkansas, Connecticut, District of Columbia, Georgia, Idaho, Iowa, Maine, Minnesota, Mississippi, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oregon, Rhode Island, South Carolina, South Dakota, Texas, Vermont, Washington, and West Virginia. Other states may join the settlement as the case progresses.
An Abra spokesperson commented on the settlement in a statement seen by Reuters.
### Previous Regulatory Scrutiny
Abra first drew attention from state securities regulators, prompting a parallel investigation that recovered $13.6 million for Abra customers, according to the Washington State Department of Financial Institutions.
### Source: Bill Barhydt
Abra halted accepting assets and conducting cryptocurrency transactions with U.S. customers on June 15, 2023. The CSBS Non-Depository Supervisory Committee informed states of the coordinated efforts against Abra and requested that individual states refrain from taking separate enforcement actions. This request was not entirely followed.
Abra’s issues extend beyond this settlement. In 2020, the Securities and Exchange Commission fined Abra $300,000 for trading in synthetic assets. In June 2023, Texas regulators issued an emergency cease-and-desist order against Abra, alleging insolvency. Following a settlement in January, Abra Earn and Abra Boost customers in Texas received their funds back.
An Abra spokesperson told Cointelegraph that the company continues to operate in the United States through SEC-registered Abra Capital Management.
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**Update (June 27, 2:30 pm UTC):** This article has been updated to include Abra’s statement in the final paragraph.