Crypto Lending Platform Abra Settles SEC Charges Over ‘Unregistered Securities Sale’
The US Securities and Exchange Commission (SEC) settled with crypto lending platform Abra over allegations of selling unregistered securities and operating as an unregistered investment company. Plutus Lending, which operates Abra, agreed to the settlement without admitting or denying the claims, with civil penalties to be determined by the court. Abra's Earn program allowed retail investors to deposit crypto assets for interest, accumulating around $600 million, primarily from US investors. The SEC's complaint stated that Abra operated as an unregistered investment company for two years, maintaining 40% of its assets in investment securities. Abra began winding down the Earn program in June 2023, advising US customers to withdraw their assets. The SEC highlighted the importance of registration laws for investor protection. Abra stated that no consumer harm occurred due to the settlement, and all US Earn customer assets were transferred to Abra Trade accounts. Abra continues to operate in compliance with regulations through Abra Capital Management.
