Abra Crypto Firm and CEO Facing Legal Action from Texas Regulator
Allgemein• The Texas State Securities Board has issued an emergency cease-and-desist order against crypto lender Abra, claiming that it has been insolvent since at least March 31, 2023.
• It alleges that the company secretly transferred assets to Binance, which was sued last week by the US Securities and Exchange Commission and accused of running an unregistered crypto exchange.
• Abra had more than $118 million worth of digital assets held at Binance as of February 2023.
Texas State Securities Board Takes Enforcement Action Against Crypto Firm Abra
The Texas State Securities Board has issued an emergency cease-and-desist order against crypto lender Abra, claiming that it has been insolvent since at least March 31, 2023. The regulator claims that the company made offers of investments in Abra Earn containing statements that were materially misleading or otherwise likely to deceive the public. The regulator also alleges that the company secretly transferred assets to Binance, which was sued last week by the US Securities and Exchange Commission for running an unregistered crypto exchange. As of February 2023, Abra had more than $118 million worth of digital assets held at Binance.
Allegations Against CEO Bill Barhydt
The Texas State Securities Board is taking enforcement action against Abra’s founder William Barhydt for allegedly committing securities fraud as well as engaging in deception regarding the sale of investment products through its affiliates Abra Earn and Abra Boost. The filing claimed that as of October 2022, Abra began offering and selling investments in Abra Boost without disclosing material information about its financial situation or capitalization parties.
Abra’s Financial Situation
According to the Thursday filing from the Texas regulator, parties collectively operating as Ab