The Texas State Securities Board reached a preliminary agreement with crypto platform Abra to address allegations that it had deceived investors in the sale of its products, Abra Earn and Abra Boost.
This regulatory action was taken against the company in June of the previous year, with the Board accusing them of purposefully concealing financial information, defaulting on loans, and secretly transferring funds to Binance.
According to the board, Abra was already insolvent as of March 31, while continuing to attract investor funds.
In order to resolve the allegations, Abra has agreed to convert $13.6 million worth of frozen cryptocurrency assets into fiat currency to be returned to more than 12,000 US investors, with $1.8 million belonging to 1,600 Texas residents.
Additionally, Abra has committed to notifying all customers with a balance of more than $10 and giving them a seven-day opportunity to withdraw their assets.
The settlement also involves Abra’s CEO, Bill Barhydt, and three other companies under their control that were involved in the sale of investment products. Abra has 30 days to fulfill its obligations under the agreement.
