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Cryptocurrency firm Abra reaches settlement with US states for operating without licenses
By Hannah Lang
(Reuters) -Financial regulators in 25 U.S. states announced a settlement on Wednesday with cryptocurrency investment platform Abra and its CEO for operating without the required state license.
As part of the deal, Abra agreed last year to no longer accept cryptocurrencies from U.S. Abra Trade account customers in its products and services, the Conference of State Bank Supervisors (CSBS) said in a statement, after agreeing to stop making cryptocurrencies available for purchase and trade.
Abra said last year it was shutting down operations for U.S. retail clients, after facing a series of enforcement actions from state securities regulators.
Under the terms of the settlement announced Wednesday, Abra CEO Bill Barhydt will be barred from participating in the operations or affairs of any money transmitter or money services business licensed in the 25 states for five years.
Abra will also be required to refund up to $82.1 million to customers in the 25 states. The states involved in the settlement – including Washington, Texas, Georgia and Ohio – have agreed to waive fines in order for customers to be fully reimbursed.
“Abra is pleased to enter into a Term Sheet negotiated with a working group of the Money Transmitters Regulators Association regarding the Abra App which Abra previously offered in the United States,” an Abra spokesperson said in a statement.
The spokesperson noted that Abra continues to operate in the United States through Abra Capital Management, an SEC-registered investment advisor.
Barhydt said the company was “pleased that the state negotiations are behind us.”
“State financial regulators take seriously their role to protect consumers and prevent unlicensed activity,” Charlie Clark, president of the CSBS and director of the Washington State Department of Financial Institutions, said in a statement. “Companies that do not operate within the bounds of state laws will be held accountable.”
(Reporting by Hannah Lang in New York; Editing by Josie Kao and Andrea Ricci)