The Texas Securities Commission issued an emergency cease and desist order to Abra, accusing it of misleading the public and committing securities fraud

2023-06-17 09:26:07

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ChainCatcher news, the Texas Securities Commission has accused the cryptocurrency lending platform Abra (Plutus Financial), Abra Boost, Plutus Lending, and founder William Barhydt of misleading the public and committing securities fraud, and has issued an emergency cease and desist order. The Texas Securities Commission stated that the company has been insolvent since at least March 31, 2023. Abra offered investments in Abra Earn and Abra Boost, but these investment products contained misleading statements.

Regulators claimed that Abra Trade and the defendant Plutus Lending have been secretly transferring assets to Binance, with assets valued at $118,581,732 as of February 2023. Abra has less than $30 million in assets at Babel Finance, $8.8 million in assets at Auros Tech Limited, $30 million in assets at Genesis, and $10 million in assets at Three Arrows Capital, all of which are undergoing various liquidation or bankruptcy proceedings. (source link)

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