TechFlow reported, according to CoinDesk, that officials from the Texas State Securities Board have settled their lawsuit against Abra on Monday, clearing the way for investors in the crypto lending firm to withdraw funds previously frozen. In a notice sent to consumers, the Texas securities commissioner stated that under the settlement terms, Abra must allow approximately 12,000 investors to reclaim the cryptocurrency they deposited into interest-bearing accounts such as Abra Boost and Abra Earn. The notice indicated that these funds, worth about $13.6 million last year, had been locked on the company's platform since last summer.
The Texas State Securities Board said that if the agreement is fulfilled, it will resolve a series of enforcement actions against Abra for offering its Earn and Boost investment products while being nearly insolvent. The regulator claimed both products are securities, meaning their registration falls within the agency’s jurisdiction. In addition to meeting other requirements outlined in the agreement, Abra must open withdrawals within the next 30 days. Abra customers with balances exceeding $10 will receive instructions on how to withdraw funds from their accounts, which must be completed within a 7-day withdrawal window. Under the terms of the settlement, any unclaimed funds will be converted into U.S. dollars and distributed via check to Texas-based investors.
