Texas regulator says Abra secretly moved funds to Binance, has been insolvent for months

The Texas State Securities Board filed an exigency cease and desist bid connected June 15 against the cryptocurrency lending steadfast Abra.

In its order, the regulator said, based connected its investigations, it recovered that Abra and related parties committed fraud and made misleading statements.

The regulator said Abra made misleading statements by suggesting it was a “crypto bank” erstwhile successful fact, Abra and its companies bash not person a Texas slope charter, are not licensed to run successful Texas, and bash not supply FDIC deposit insurance.

The securities committee additionally said that Abra and associated parties “secretly” transferred holdings to Binance.com and held implicit $118 cardinal connected the level arsenic of February 2023. It said that Abra has failed to disclose the U.S. Securities and Exchange Commission’s and Commodity and Futures Trading Commission’s ongoing cases against Binance and related parties, thereby misleading customers.

The regulator described galore different instances successful which Abra made fraudulent and misleading statements successful its filing today.

It besides said it recovered that Abra’s assorted parties “were collectively insolvent oregon astir insolvent” during its probe connected March 31, 2023.

Abra ordered to cease and desist

The filing orders Abra’s assorted companies and CEO to cease and desist from engaging successful fraudulent offerings successful Texas and from making misleading statements. It besides seeks to person Abra and related parties wage a good and instrumentality funds to customers.

The regulator does not specifically authorities however Abra should marque changes to its offered services. Abra Earn was discontinued amidst the TSSB’s investigations successful October 2022; Abra Boost remains disposable to accredited and organization investors successful the U.S.

The filing names Plutus Financial — which is doing concern arsenic Abra — arsenic good arsenic Abra Boost LLC and Abra CEO Bill Barhydt arsenic the people of the order.

Abra and Barhydt person not responded to the filing publicly. The institution did not respond to CryptoSlate’s petition for remark astatine property time.

The station Texas regulator says Abra secretly moved funds to Binance, has been insolvent for months appeared archetypal connected CryptoSlate.