Crypto Clampdown: Abra Settles with 25 States, CEO Barhydt Banned for 5 Years

Financial regulators in 25 U.S. states have reached a settlement with cryptocurrency investment platform Abra and its CEO, Bill Barhydt, for operating without necessary state licenses. Abra will cease cryptocurrency trading for U.S. customers and refund up to $82.1 million to affected users. Barhydt faces a 5-year operational ban.

Financial regulators in 25 U.S. states announced on Wednesday a settlement with cryptocurrency investment platform Abra and its CEO for operating without required state licensing.

As part of the settlement, Abra agreed to stop making cryptocurrencies available for buying and trading to U.S. Abra Trade customers as of June 15, the Conference of State Bank Supervisors (CSBS) said in a release. Abra had said last year that it was winding down operations for U.S. retail customers, after facing a slew of enforcement actions from state securities regulators.

Under the terms of the settlement announced Wednesday, Abra CEO Bill Barhydt will not be able to participate in the business 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 -- agreed to forgo monetary penalties in order for customers to be fully repaid.

"Abra is pleased to enter into a Term Sheet negotiated with a working group from the Money Transmitters Regulators Association regarding the Abra App that Abra previously offered in the U.S.," an Abra spokesperson said in a statement. Barhydt did not immediately respond to a request for comment.

"State financial regulators take their role to protect consumers and prevent unlicensed activity seriously," said CSBS Chair and Washington State Department of Financial Institutions Director Charlie Clark in a statement. "Companies that do not operate within the bounds of state laws will be held accountable."

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)