In a significant development for cryptocurrency investors in New Jersey, Abra, a crypto trading and lending company, has reached a settlement with the New Jersey Bureau of Securities. The agreement, which follows a multi-state investigation into the sale of unregistered securities, mandates that Abra convert the remaining crypto assets in New Jersey accounts to US dollars and issue refund checks to investors. The settlement is a response to claims that Abra illegally marketed interest-earning crypto accounts, such as "Abra Boost" and "Abra Earn," to residents of New Jersey.
New Jersey Attorney General Matthew J. Platkin has advised all Abra investors in the state to withdraw their funds promptly. The recommendation comes in light of Abra’s decision to cease operations in the United States following the investigation. Platkin emphasized that new financial products, even those tied to evolving technologies like cryptocurrencies, are subject to securities laws. He assured that the Bureau of Securities will continue to protect investors in digital assets just as it does in traditional financial markets.
“The Bureau of Securities will ensure that investors purchasing securities in digital assets are afforded the same protections as those in traditional financial products,” Platkin stated.
As part of the settlement, Abra and its CEO, William Barhydt, have agreed to refund all virtual assets held by New Jersey investors. The settlement addresses allegations that Abra unlawfully sold unregistered securities, accumulating over $2.97 million from New Jersey residents. The agreement includes the following key points:
The settlement is part of a coordinated effort led by multi-state securities regulators, including the Texas State Securities Board, which has been investigating Abra’s practices since June 15, 2023. As a result of these regulatory actions, Abra has decided to shut down its retail operations in the US. Abra and Barhydt will also be required to sign a consent order with the Bureau, which mandates that they cease offering unregistered securities to New Jersey residents.
New Jersey Acting Director of the Division of Consumer Affairs, Cari Fais, emphasized the importance of the settlement in ensuring that investors recover their funds. “The agreement requires Abra to return the funds it raised through the unlawful sale of unregistered securities. We are committed to making sure that New Jersey investors get their money back,” Fais said.
Elizabeth M. Harris, Bureau Chief, echoed these sentiments and urged investors to act quickly to secure their funds. “We want to ensure that all clients who have invested in Abra are able to recover their assets,” Harris added.
The settlement between Abra and the New Jersey Bureau of Securities marks a significant resolution in the ongoing regulatory scrutiny of cryptocurrency firms. With Abra agreeing to refund New Jersey investors and cease offering unregistered securities, affected individuals are encouraged to withdraw their funds or accept refund checks. This settlement underscores the commitment of regulatory authorities to uphold investor protection in the rapidly evolving cryptocurrency landscape.
August 2024, Cryptoniteuae