TechFlow News — The U.S. Securities and Exchange Commission (SEC) has charged cryptocurrency firm Abra with offering and selling a retail crypto lending product, and the parties have reached a settlement.
Abra has agreed to an injunction prohibiting violations of the registration provisions of the Securities Act and the Investment Company Act, and will pay a civil penalty to be determined by the court.
The SEC stated that Abra’s “Abra Earn” product, launched in 2020, managed approximately $600 million in assets at its peak, with $500 million coming from U.S. investors. The SEC alleges that Abra Earn was offered and sold as a security without being registered with the SEC.
Notably, the SEC did not allege fraud or investor harm against Abra. Abra began phasing out the product in June 2023 and asked U.S. investors to withdraw their crypto assets. Abra has since ceased its app services in the United States and is now focusing on serving high-net-worth individuals and institutional clients.
