SEC Settles with Crypto Platform Abra

Abra and Plutus Lending have reached a settlement with the US Securities and Exchange Commission regarding claims that the platform inappropriately promoted Abra Earn to customers without registering the product as a security.

The SEC alleged that starting in 2020, Abra began offering Abra Earn, which promised high returns for using customers’ assets, and amassed a total of $600 million in investments, with almost $500 million coming from US investors.

The SEC also accused Abra of operating as an unregistered investment company for at least two years. Without admitting or denying the allegations, the company has agreed to abide by securities-registration rules and to pay any applicable civil penalties.

Abra had also previously settled with 25 states for operating without proper licenses and has committed to returning up to $82 million to US customers.