Financе

Texas State Securities Board settles with Abra, opening $13.6 million in withdrawals

The Texas State Securities Board announced Monday that it has settled in principle with Abra and its CEO, Bill Barhydt, to enable investors in the United States to withdraw their assets from the crypto platform that closed in the country after the state’s enforcement action last year.

Abra is the common name for four affiliated companies controlled by Barhydt, which offered interest-bearing Abra Earn and Abra Boost programs.

The settlement made in Texas obligates Abra to notify users with balances exceeding $10 that grants them a seven-day withdrawal period. Unclaimed assets will be converted to fiat currency and sent to remaining Texas investors, the announcement said. Abra is given 30 days to fulfill its obligations.

On June 15, 2023, Texas officials filed an emergency cease and desist order against Abra and Barhydt, alleging that the operators committed securities fraud regarding Abra Earn and Abra Boost. The board alleged that the firms behind Abra hid financial troubles, including loan defaults and transfers to Binance, while nearing insolvency as of March 31 that year.

At the time of the enforcement action, Abra had around $13.6 million worth of cryptocurrencies from over 12,000 U.S. investors.

Per the settlement in principle, the board stated that it would dismiss actions filed against Abra on or after June 15, 2023.

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