By Hannah Lang
(Reuters) – Financial regulators in 25 U.S. states on Wednesday announced a settlement with cryptocurrency investment platform Abra and its CEO for operating without the required state license.
As part of the deal, Abra agreed last year to stop accepting cryptocurrency from U.S. Abra Trade account customers in its products and services, the Conference of State Bank Supervisors (CSBS) said in a statement, after agreeing to stop of making cryptocurrencies available to buy and trade.
Abra had said last year that it was closing its operations for US retail customers, after facing a series of enforcement actions by state securities regulators.
Under the terms of the agreement announced Wednesday, Abra CEO Bill Barhydt will not be able to participate in the business or affairs of any money transfer or money services company licensed in all 25 states for five years.
Abra must also refund up to $82.1 million to customers in all 25 states. States involved in the settlement, including Washington, Texas, Georgia and Ohio, agreed to waive monetary penalties so that customers receive a full refund.
“Abra is pleased to enter into a negotiated term sheet with a working group of the Association of Money Transmitters Regulators regarding the Abra app that Abra previously offered in the US,” an Abra spokesperson said in a statement. release.
The spokesperson noted that Abra continues to operate in the United States through Abra Capital Management, an SEC-registered investment advisor.
Barhydt said the company is “pleased that the state negotiations are behind us.”
“State financial regulators take seriously their role in protecting consumers and preventing unlicensed activity,” CSBS President and Washington State Department of Financial Institutions Director Charlie Clark said in a statement. “Businesses that do not operate within the boundaries of state laws will be held accountable.”
