Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
Crypto Flexs
Home»ADOPTION NEWS»Abra, Abra Earn Settle SEC Charges Over Unregistered Crypto Asset Securities Sales
ADOPTION NEWS

Abra, Abra Earn Settle SEC Charges Over Unregistered Crypto Asset Securities Sales

By Crypto FlexsAugust 26, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Abra, Abra Earn Settle SEC Charges Over Unregistered Crypto Asset Securities Sales
Share
Facebook Twitter LinkedIn Pinterest Email

The U.S. Securities and Exchange Commission charged Plutus Lending LLC, operating as Abra, in July 2020 with offering and selling unregistered cryptocurrency asset securities in cryptocurrency lending products.

According to an official statement from the regulator, the agency alleged that the financial services and technology company was operating as an unregistered investment firm.

The SEC complaint focused on Abra Earn, the company’s yield-generating service that allowed U.S. users to earn interest on their cryptocurrencies. Abra allegedly used customer digital assets to “generate its own income and fund interest payments” and offered and sold securities that “did not qualify for an exemption from SEC registration.”

The agency said, “As part of the settlement with the SEC, Abra neither admitted nor denied the SEC’s allegations, agreed to a preliminary injunction restraining Abra from violating the registration provisions of the Securities Act and the Investment Company Act, and required the company to pay a civil penalty in an amount to be determined by the court.”

According to the SEC, Abra Earn attracted approximately $600 million in cryptocurrency assets, $500 million of which came from U.S. customers.

“Abra allegedly sold nearly $500 million worth of securities to U.S. investors without complying with registration laws that require investors to have sufficient information to make informed decisions before investing,” Stacy Bogert, director of the SEC’s Division of Enforcement, said in a statement. “To further compound the potential harm to investors, Abra is accused of selling its own securities in a manner that circumvents provisions of the Investment Company Act that provide investors with a number of important protections, including those designed to minimize conflicts of interest.”

In a statement to The Block, an Abra spokesperson said:

“Abra subsidiary Plutus Lending LLC (“PLL”) has agreed to settle a lawsuit brought by the SEC regarding Abra Earn, a service that was discontinued in 2022. PLL admits no wrongdoing and agrees to continue to comply with the securities laws. There was no harm to consumers as a result of the settlement or closure of Abra Earn. All assets of U.S. Earn customers, including accrued interest, were transferred to Abra Trade accounts in 2023. Abra continues to operate in the United States through Abra Capital Management, an SEC-registered investment adviser.”

As The Block previously reported, the Texas Securities and Exchange Commission brought an enforcement action against Abra Earn in June 2023, alleging securities fraud against Abra and its CEO.

UpdatedMonday, August 26, 19:47 UTC: Added statement from Abra and clarified that this is the agreement for 2020 rates.


Disclaimer: The Block is an independent media outlet providing news, research and data. As of November 2023, Foresight Ventures is the largest investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information on the cryptocurrency industry. Below are the current financial disclosures.

© 2024 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Sei Development Foundation: Use of US Innovation for Global Block Chain

June 6, 2025

Solana’s Journey: Promotion of Challenge, Innovation and Speed

June 6, 2025

Bitcoin’s $ 100k drop in caught many merchants for many merchants.

June 6, 2025
Add A Comment

Comments are closed.

Recent Posts

2025 Best Free Cloud Mining

June 6, 2025

Sei Development Foundation: Use of US Innovation for Global Block Chain

June 6, 2025

Analyst Michaël Van de Poppe says Bitcoin is getting higher.

June 6, 2025

Does Ethereum start their business? MorningStar Candlestick Pattern tells the story

June 6, 2025

Solana’s Journey: Promotion of Challenge, Innovation and Speed

June 6, 2025

Ether Leeum’s imminent brake out in major chart patterns

June 6, 2025

Bittensor increases rapidly after 118 subnets in the $ 1,000 TAO price guess.

June 6, 2025

Bitcoin’s $ 100k drop in caught many merchants for many merchants.

June 6, 2025

As the ETF rises, Bitcoin Eye Major Rally -but this can ruin the party.

June 6, 2025

Secure the Treasury in the BNB chain and launch VANECK

June 6, 2025

Use Sunny Mining Cloud Mining to earn $ 12,000 a day

June 6, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

2025 Best Free Cloud Mining

June 6, 2025

Sei Development Foundation: Use of US Innovation for Global Block Chain

June 6, 2025

Analyst Michaël Van de Poppe says Bitcoin is getting higher.

June 6, 2025
Most Popular

Deep Learning Revolutionizes Long-Range Weather and Climate Predictions

November 16, 2024

Bitcoin price surge towards $40,000 boosted sentiment in KAS, RUNE, MNT, and RNDR.

December 3, 2023

Top 10 Proof Of Work Blockchains Like Bitcoin

February 25, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.