News
The State of Nevada Reaches a Settlement with a Financial Firm Over an Unlicensed Cryptocurrency Operation
LAS VEGAS, Nev. (KOLO) – The State of Nevada has reached an agreement with financial company Abra on cryptocurrency licensing.
The Division of Financial Institutions joined 24 other state financial regulatory agencies in filing a class action lawsuit against the company and its largest shareholder, Bill Barhydt, who they said was operating a cryptocurrency company without the required state license.
A multi-state investigation found that the company had been operating a mobile app to buy, sell, trade, and invest in cryptocurrencies without obtaining the appropriate license.
Under the settlement agreement, Abra will stop accepting virtual asset allocations from U.S. Abra Trade Account customers in their products and services and will stop making, buying, selling or trading cryptocurrencies available to its customers last summer.
The agreement also provides that Abra will refund customers in the signatory states for all virtual assets remaining on its platform.
“Our role is to protect consumers by preventing unauthorized activity,” said Financial Institutions Division Commissioner Sandy O’Laughlin. “Companies that do not operate in accordance with Nevada law will be held accountable.”
Barhydt also agreed not to participate in any way in the activities or business of transmitting money or providing money services for five years.
Nevada and the other states in the settlement agreed to waive the $250,000 fine per jurisdiction to allow Abra to reimburse customers. Once the remaining virtual assets are returned, up to $82.1 million will be refunded to customers.
Copyright 2024 KOLO. All rights reserved.