Texas Regulator Orders Digital Asset Platform Abra to Cease Operations

The Texas Securities Board (USA) has issued an order for Abra, a digital asset management platform, to cease operations immediately due to accusations of securities fraud.

According to the agency, CEO Bill Barhydt was involved in the fraudulent sale of Abra Earn and Abra Boost investment products, misleading investors that their digital assets would yield interest payments of up to 10% per year.

Allegations also uncovered intentional withholding of financial information, defaults on loans, and secretly transferring assets to Binance.

The platform was allegedly insolvent as of March 31, yet misleadingly assured users on social media that there were no bankruptcies.

In October of 2022, Abra disclosed it would stop selling Abra Earn investments, yet began offering and selling Abra Boost to institutional investors in the US. As of May 17, Abra earned $116.79 million in funding from US investors through both Abra Earn and Abra Boost.