Abra settles with SEC over unregistered securities charges
The SEC announced securities charges against the lending platform over its Abra Earn service but also said the firm had settled with pending civil penalties and an injunction.
The United States Securities and Exchange Commission announced that cryptocurrency platform Abra had agreed to a settlement over allegations the firm did not register the offers and sales of its lending product.
In an Aug. 26 notice, the regulator said Plutus Lending, doing business as Abra, “without admitting or denying the SEC’s allegations,” had agreed to pay civil penalties to be determined by a court and an injunction prohibiting the firm from violating securities laws. The SEC filed charges against the lending platform for failing to register the offers and sales of Abra Earn and operating as an unregistered investment company.
“Abra allegedly sold its own securities while skirting applicable Investment Company Act provisions that provide a number of important protections to investors, including minimizing conflicts of interest,” said SEC Enforcement Associate Director Stacy Bogert. “This matter reflects yet again, that in conducting enforcement investigations, we are governed by economic realities, not cosmetic labels.”
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Author: Turner Wright
