Crypto lender Abra has been insolvent since March, says Texas regulator
Crypto lending firm Abra, which once handled more than $116 million in assets, had allegedly committed securities fraud and has been insolvent since March 31, according to Texas regulators.
In a June 15 enforcement action — including an emergency cease and desist order — the Texas State Securities Board accused Abra and its founder William Barhydt of committing securities fraud as well as engaging in deception regarding the sale of investment products through its affiliates Abra Earn and Abra Boost.
"The alleged misconduct includes the intentional concealment of financial information reflecting the capitalization of parties, defaults on loans, and the transfer of assets to Binance," the regulator said.
Abra was founded in 2014 by Barhydt, and allowed both retail and institutional investors to engage in the trading, lending and borrowing of crypto assets.
As of May 17, 2023, Abra collectively held approximately $116.79 million of assets under management for Abra Earn and Abra Boost investors in the United States.
The regulator alleged that Barhydt and Abra “made offers of investments in Abra Earn in Texas containing statements that were materially misleading or otherwise likely to deceive the public.”
Abra has no direct exposure to SIlicon Valley Bank or Silvergate Bank. All services at Abra are fully operational.AbraUSD held in Abra Trade is totally safe and can be converted to any other crypto asset supported by Abra Trade including Tether, Ethereum and Bitcoin. /1
According to regulators, Abra announced that it would “cease selling investment in Abra Earn in October 2022.” The firm allegedly did no such thing. In October, Abra and its affiliates “began offering and selling investments in Abra Boost, a digital asset
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