Cryptocurrency platform Abra, along with its CEO William Barhydt, has reached a settlement with Oregon financial regulators, marking another step in its withdrawal from the US market. Under the agreement, Abra will return assets held by Oregon users on its platform and cease the issuance of unregistered securities in the state. This move comes amidst regulatory scrutiny across several states, with Oregon being the fifth to take action against Abra and its ecosystem.
Oregon's financial authorities accused Abra of breaching state securities laws through its interest-bearing cryptocurrency deposit accounts, namely Abra Earn and Abra Boost. As part of the settlement, Abra is required to advise all account holders in Oregon to withdraw their crypto assets from the platform. Compliance with this directive and the successful return of assets to Oregon customers by April 25 will exempt Abra from penalties.
In Oregon alone, 167 Abra customers hold approximately $32,387.14 on the platform. Similar settlements have been reached in other states, such as Iowa and Maryland. Iowa's settlement in February required Abra to return $6,426.90 to around 39 customers to avoid a substantial penalty. Maryland, in September 2023, took action on behalf of 162 residents with balances totaling $700,000.
Maryland Attorney General Anthony Brown emphasized the state's involvement in a collaborative effort among securities regulators focused on interest-bearing crypto asset accounts. Additionally, Abra has faced regulatory actions in Texas and California. In Texas, Abra agreed to repay residents their balances on the platform, following an enforcement action in June 2023 revealing approximately 1,600 residents with balances of $1.8 million. Meanwhile, California's Financial Protection and Innovation Commissioner issued a consent order in April 2023 requiring Abra to close $19 million in Californians' Earn accounts.
As part of its strategic shift, Abra announced in July its decision to cease retail operations in the United States, reflecting the company's response to the evolving regulatory landscape and its commitment to compliance.
