Cryptocurrency platform Abra has settled with the Texas State Securities Board to allow users to withdraw their funds.
The agreement came after the securities regulator issued Abra and its CEO, William Barhydt, a cease-and-desist order in June over allegedly misleading statements about the Abra Earn investment product.
Abra must provide checks or secured bank instruments to Texas-based clients with more than $10 worth of crypto assets on the platform.
When the regulatory action was taken, this reached around 12,000 users with a total of $13.6 million. Any remaining assets after users withdraw their funds will be converted to fiat currency and distributed to investors in the state.
Additionally, Barhydt must appoint a chief compliance officer to oversee regulatory requirements for entities under his control that offer investment advice or securities.
This aims to improve oversight and adherence to existing securities laws that apply to traditional financial products and digital asset services, according to Commissioner Travis J. Iles.
The settlement provides a 30-day timeframe for Abra to fulfill the terms. This latest regulatory action for the crypto platform comes on the list of disorders in the digital asset industry in recent months.
Also Read: Senators Spar Over Crypto’s Role in Money Laundering
