The Securities and Exchange Commission of the United States has announced that Abra, a cryptocurrency platform, has agreed to a settlement following allegations that it did not properly register the sales and offerings of its lending product.
The regulator stated that Abra, also known as Plutus Lending, has agreed to pay civil penalties determined by a court and adhere to an injunction preventing further violations of securities laws.
The SEC filed charges against Abra for not registering Abra Earn, its lending service, and operating as an unregistered investment company.
Associate Director of SEC Enforcement, Stacy Bogert, stated that Abra allegedly sold its own securities without following regulations that protect investors and minimize conflicts of interest.
