Since 2020, the platform has offered Abra Earn to its clients without registering the product as a security. Through this product, Abra raised approximately $600 million, with $500 million of that amount coming from U.S. investors.
According to the SEC, Abra operated illegally for two years by failing to register the product as required by law. The platform reportedly used investor assets to generate its own profits.
Stacey Bogert, Associate Director of the SEC’s Enforcement Division, emphasized that Abra sold securities to U.S. investors without adhering to registration laws.
Although Abra agreed to the penalties imposed by the court, the platform did not admit to any wrongdoing. At the time of the legal proceedings, Abra also reached settlements with 25 states and committed to returning up to $82 million to investors.
Abra’s legal representative declined to comment on the case.
The settlement reached on Monday marks the second time Abra has settled with the SEC. In 2020, the company paid $150,000 to the Commodity Futures Trading Commission (CFTC) to conclude an investigation related to its spot product.
Abra is a versatile cryptocurrency platform that offers users the ability to buy, sell, store, and earn on cryptocurrencies. The company provides a wide range of services, including crypto investments, asset management, and lending. Abra aims to make cryptocurrencies accessible and convenient for users around the world.