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Cryptocurrency firm Abra will return $82 million to users in US settlement
Cryptocurrency firm Abra has reached a settlement with 25 U.S. state financial regulators for operating a cryptocurrency firm without state licenses. The states filed a class action lawsuit against the firm, its subsidiaries, and CEO William Barhydt. The firm will return approximately $82 million worth of digital assets to customers.
Abra enters into an agreement with 25 states
In a June 26 press release, the Conference of State Bank Supervisors (
CSBS) announced the settlement following the class action taken against ABRA and its CEO. According to the release, state financial regulators in Georgia, Texas, Ohio, Vermont, etc. they conducted an investigation and found that Abra was carrying out crypto services including buying, selling and investing without a license.
Charlie Clark, president of the CSBS, reiterated the obligation of state regulators to protect financial consumers and investigate companies.
“State financial regulators take their role of protecting consumers and preventing unlicensed activity seriously. Companies that do not operate within the bounds of state laws will be held accountable.”
As part of the settlement, Barhydt will be barred from participating in any capacity in activities in the states where the settlement occurred. However, he can become a passive investor.
Company to refund customers
Under the agreement, Abra will refund digital assets into its platform for Abra Trade’s US customers. This will bring in approximately $82.1 million cryptographic resources returned to users in the states involved in the agreement.
“Once the remaining virtual assets are returned under the terms of the settlement, consumers will be refunded up to $82.1 million. The investigation and settlement occurred in conjunction with a separate investigation by state securities regulators.”
Timi facilitates user refunds, the states involved have agreed to waive the $250,000 fine per jurisdiction as a penalty for using the platform with the required license. This is added to the list of US legislation cases in the United States as authorities step up efforts citing consumer protection.
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David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in learning about emerging technologies and has an eye for the latest news. Staying up to date on trends, David has reported in several niches including regulation, partnerships, cryptocurrencies, stocks, NFTs, etc. Away from the financial markets, David cycles and rides horses.