New Jersey regulators have advised investors to withdraw any remaining cryptocurrency from their accounts with the crypto lender Abra.
According to a press release from the State’s Attorney General Matthew J. Platkin, the Division of Consumer Affairs, and the Bureau of Securities, the California-based company Abra is shutting down its U.S. operations following a multistate investigation that uncovered it was operating without the required state money services business (MSB) licenses.
The Attorney explained that as part of a settlement agreement, Abra and its CEO, William John “Bill” Barhydt, have agreed to refund all remaining virtual assets on the platform.
Additionally, any cryptocurrency held in New Jersey accounts will be converted to USD. Checks will be issued for balances over $10, while smaller amounts will remain on the platform for withdrawal. Unclaimed funds will be transferred to the New Jersey Department of the Treasury’s Unclaimed Property Administration. Abra is required to inform New Jersey customers about the process for withdrawing their assets.
Cari Fais, acting director of the Division of Consumer Affairs, emphasized,
“The settlement mandates Abra to return the funds it unlawfully obtained through the sale of unregistered securities in New Jersey. These funds rightfully belong to New Jersey investors, and our goal is to ensure they are returned.”
This news follows recent developments in which Abra agreed to a $82 million settlement with 25 states over licensing violations. A coalition of state securities regulators, spearheaded by Texas, launched an investigation into Abra’s interest-bearing accounts.
Beginning in June 2023, several states, including New Jersey, initiated legal actions against Abra and its CEO, leading to the company’s decision to wind down its U.S. operations. Abra also allegedly sold interest-bearing accounts, including “Abra Boost” and “Abra Earn,” in violation of state securities laws.
In June, Abra and its CEO reached a settlement with 25 states to address allegations of operating without the necessary licences. Under the agreement, Abra committed to returning up to $82.1 million to affected customers. To ensure refunds take precedence, the states involved in the settlement waived any potential penalties.
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