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The Texas State Securities Board filed an emergency cease and desist order against crypto trading platform Abra and its chief executive officer, Bill Barhide. The watchdog claimed that the company misled its customers and committed securities fraud by offering some of its products, such as Abra Earn, as false.
The regulator said the firm has been “surreptitiously transferring assets” to Binance, noting that the US SEC recently targeted the world’s largest crypto exchange.
Bankrupt since March?
texas regulator Maintained In its lengthy warning letter that Abra defrauded the public and engaged in fraud through the offering and sale of unregistered securities. The company allegedly violated existing laws using its yield-earning product Abra Earn.
While it removed that offering in October 2022, the platform later began selling investments through a similar product called Abra Boost. According to the watchdog, the shift was just another way to mislead and scam users.
A working group interviewed CEO Barhayd at the end of March this year, estimating that “the parties operating as Abraham were collectively insolvent or nearly insolvent.”
It is noteworthy that the organization has already been a target for some of the top financial regulators in the United States – the SEC and the CFTC. agencies imposed Abra and Plutus Tech were fined $300,000 each for the alleged sale of illegal “security-based swaps to retail investors”.
The Texas State Securities Board also suggested that the entity was secretly sending funds to Binance. The order states that as of February, Abra had assets of over $118 million in the crypto behemoth.
Binance also has conflicts with US regulators. SEC has recently filed A lawsuit against the exchange, its US affiliate and CEO Changpeng Zhao, accusing it of offering trading services with unlicensed securities, including BNB and BUSD.
Also, Binance.US remove More than 100 trading pairs including AAVE/USDT, MANA/USDT, BCH/BTC, DOT/BTC, MANA/BTC, and XTZ/BTC after the Commission requested freezing orders.
Abraham’s rise and fall
Found in Silicon Valley in 2014, Abra gained momentum in 2018 when it added support for 20 additional cryptocurrencies such as Bitcoin Cash (BCH) and Litecoin (LTC). Its expansion continued in subsequent years, peaking in 2021 during the bull market.
At that time, Abraham Safe A $55 million fundraiser backed by some of the biggest names in finance like American Express.
place of business revealed It intends to launch two financial institutions in 2022 called Abra Bank (focused on US customers) and Abra International (designated for global users).
“We believe that for Abra, this is a defining moment that brings us closer to our mission of making financial freedom and well-being accessible to everyone, everywhere,” the firm said at the time.
However, the prolonged crypto winter, which affected various digital asset organizations, took its toll on Abra as well, and the firm had to sack 5% of its staff last summer.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
[ad_1]
The Texas State Securities Board filed an emergency cease and desist order against crypto trading platform Abra and its chief executive officer, Bill Barhide. The watchdog claimed that the company misled its customers and committed securities fraud by offering some of its products, such as Abra Earn, as false.
The regulator said the firm has been “surreptitiously transferring assets” to Binance, noting that the US SEC recently targeted the world’s largest crypto exchange.
Bankrupt since March?
texas regulator Maintained In its lengthy warning letter that Abra defrauded the public and engaged in fraud through the offering and sale of unregistered securities. The company allegedly violated existing laws using its yield-earning product Abra Earn.
While it removed that offering in October 2022, the platform later began selling investments through a similar product called Abra Boost. According to the watchdog, the shift was just another way to mislead and scam users.
A working group interviewed CEO Barhayd at the end of March this year, estimating that “the parties operating as Abraham were collectively insolvent or nearly insolvent.”
It is noteworthy that the organization has already been a target for some of the top financial regulators in the United States – the SEC and the CFTC. agencies imposed Abra and Plutus Tech were fined $300,000 each for the alleged sale of illegal “security-based swaps to retail investors”.
The Texas State Securities Board also suggested that the entity was secretly sending funds to Binance. The order states that as of February, Abra had assets of over $118 million in the crypto behemoth.
Binance also has conflicts with US regulators. SEC has recently filed A lawsuit against the exchange, its US affiliate and CEO Changpeng Zhao, accusing it of offering trading services with unlicensed securities, including BNB and BUSD.
Also, Binance.US remove More than 100 trading pairs including AAVE/USDT, MANA/USDT, BCH/BTC, DOT/BTC, MANA/BTC, and XTZ/BTC after the Commission requested freezing orders.
Abraham’s rise and fall
Found in Silicon Valley in 2014, Abra gained momentum in 2018 when it added support for 20 additional cryptocurrencies such as Bitcoin Cash (BCH) and Litecoin (LTC). Its expansion continued in subsequent years, peaking in 2021 during the bull market.
At that time, Abraham Safe A $55 million fundraiser backed by some of the biggest names in finance like American Express.
place of business revealed It intends to launch two financial institutions in 2022 called Abra Bank (focused on US customers) and Abra International (designated for global users).
“We believe that for Abra, this is a defining moment that brings us closer to our mission of making financial freedom and well-being accessible to everyone, everywhere,” the firm said at the time.
However, the prolonged crypto winter, which affected various digital asset organizations, took its toll on Abra as well, and the firm had to sack 5% of its staff last summer.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
