NJ Attorney General Urges Investors to Withdraw from Abra

The New Jersey Attorney General has urged state investors to withdraw funds from the crypto lending and trading platform Abra as the company winds down its U.S. operations following a multistate investigation into the sale of unregistered securities.

In an Aug. 12 statement, A.G. Matthew Platkin advised New Jersey investors with accounts at the California-based crypto company to quickly reclaim their assets before the company exits the U.S. market.

Attention NJ investors! Did you invest in Abra Earn or Abra Boost accounts? Do you have crypto assets remaining on the Abra platform? Learn how our settlement with Abra over securities violations can help you.

Platkin’s warning follows a settlement in principle between the Abra platform, its chief executive, William Barhydt, and the New Jersey Bureau of Securities. The settlement addressed allegations that Abra sold interest-bearing crypto accounts, known as Abra Boost and Abra Earn, without proper registration. New Jersey residents had invested nearly $3 million in these products.

As part of the settlement, Abra is required to return all remaining crypto assets to investors. According to the A.G.’s statement, the funds will be converted to U.S. dollars, and refund checks will be issued for amounts of $10 or more. For balances below $10, investors can withdraw directly through the Abra app. Unclaimed funds will be transferred to the New Jersey Department of the Treasury’s Unclaimed Property Administration.

Following the enforcement actions, Abra began winding down its U.S. retail operations. This settlement is the result of a coordinated effort led by state securities regulators, including the Texas State Securities Board (TSSB). The investigation into Abra started in mid-2023 and focused on the legality of its financial products.

The TSSB had previously taken legal action against Abra, accusing the company of hiding critical financial information, such as party capitalization, loan defaults, operating history, and asset transfers to platforms like Binance. After months of investigation, Abra reached a settlement with TSSB, allowing users to withdraw their funds. Similar to the recent New Jersey settlement, Abra users in Texas with more than $10 in assets were issued checks, while those holding less than that amount could withdraw directly from the Abra app.

Approximately 12,000 Texans had invested up to $13.6 million in Abra’s financial products, including Abra Boost and Abra Earn.

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