Coinspeaker
New Jersey Investors Urged to Withdraw Funds from Crypto Firm Abra after Settlement
The Attorney General of the New Jersey Division of Consumer Affairs has advised citizens who have invested in the crypto trading and lending company Abra to withdraw their money hastily.
Attorney General Matthew J. Platkin said this is due to Abra closing down its operations in the United States following a multi-state investigation into the sale of unregistered securities.
The attorney’s advice was a result of a settlement in principle between Abra platform, its chief executive, William Barhydt, and the New Jersey Bureau of Securities.
Based on the settlement, Abra and its CEO, William Barhydt, have agreed with New Jersey’s securities agency to pay back all the virtual assets held by New Jersey investors on Abra’s platform. This agreement settles claims that Abra illegally sold interest-earning crypto accounts called “Abra Boost” and “Abra Earn” to investors, including over $2.97 million from people living in New Jersey.
The attorney made it clear to Abra that new products tied to trending technology are covered by security law, and the Bureau of Security will ensure that people investing in digital assets are protected. Platkin said:
“We have made it clear that firms creating new products tied to evolving technologies are not exempt from our securities laws, Our Bureau of Securities will continue to ensure that investors purchasing securities in digital assets are afforded the same protections as investors in traditional financial products.”
The New Jersey Acting Director of the Division of Consumer Affairs, Cari Fais, stated that the agreement signed requires Abra to return the money it has gained through unlawful means. The director noted that the funds are for the New Jersey investors; hence, they will do everything necessary to take them back. Cari said:
“The agreement announced today requires Abra to return the funds it raised through the unlawful sale of unregistered securities in our state…these funds belong to New Jersey investors, and we want to make sure investors get them back.”
Bureau Chief Elizabeth M. Harris also echoed these words, urging investors to hurriedly withdraw their assets or accept checks instead. She said they want to ensure that all clients who have invested in the crypto company are able to secure their funds.
Refund Procedure
The agreed settlement states that the crypto company will convert the remaining crypto assets in New Jersey accounts to US dollars and carry out investor refund checks for amounts of $10 and more.
Balances of less than $10 will be left for investors to withdraw straight from the Abra app. More so, any uncashed checks or unclaimed funds will be sent to New Jersey’s Treasury Department to hold onto in case the owners come forward later.
This agreement is part of a joint effort by multi-state securities regulators led by the Texas State Securities Board. The authorities have been investigating Abra’s products since June 15, 2023. After the authorities took action, Abra decided to shut down its retail business in the US.
Based on the agreed settlement, Abra and its CEO Barhydt will sign a consent order with the Bureau, which requires them to stop offering unregistered securities that violate the securities law to residents of New Jersey.
New Jersey Investors Urged to Withdraw Funds from Crypto Firm Abra after Settlement
