Crypto platform supported by American Express is charged by the Texas supervisory authority for fraud

Crypto platform supported by American Express is charged by the Texas supervisory authority for fraud

The Texas State Securities Board has submitted an emergency offense against the Abra Crypto trading platform and its CEO Bill Barhydt. The supervisory authority claimed that the company had misled its customers and committed securities fraud by offering some of its products like Abra Earn.

The regulatory authority added that the company had transferred "secretly assets" to Binance, and pointed out that the US stock exchange supervision SEC recently targeted the world's largest crypto exchange.

since March?

The Texas regulatory authority cultivated in his long warning letter claimed that Abra deceived the public and not registered by the offer and the sale Have committed fraud. The company is said to have violated existing laws with its return product Abra Earn.

Although this offer was discontinued in October 2022, the platform later began selling investments via a similar product called Abra Boost. According to the supervisory authority, the postponement was another way to mislead users.

A working group interviewed CEO Barhydt at the end of March this year and estimated that "the parties that acted together as Abra were unable to pay overall or almost unable to pay."

It is worth noting that the organization has already become the goal of some of the leading financial supervisory authorities in the USA-the SEC and the CFTC. The agencies imposed A fine of $ 300,000 against Abra and Plutus Tech because of the alleged sale of illegal "securities swaps to private investors".

The Texas State Securities Board also indicated that the company has secretly transferred money from Binance. According to the arrangement, Abra had assets worth over $ 118 million in February in February.

Binance also has a dispute with the American supervisory authorities. The seconds recently stored a lawsuit against the stock exchange, its US subsidiary and CEO Changpeng ZHAO, in which they are accused of offering trade services with non-licensed securities, including BNB and Busd.

Besides, Binance.Us Decoted Data Preserver-Spaces = "True"> over 100 trading pairs, including Aave/Usdt, BC/BTC, DOT/BTC, Mana/BTC and XTZ/BTC after the Commission applied for a freezer order.

Abras Rise and fall

Abra was founded in Silicon Valley in 2014 and won dynamics in 2018 when it supported 20 other cryptocurrencies such as Bitcoin Cash (BCH) and Litecoin (LTC). The expansion continued in the following years and reached its peak during the bull market in 2021.

Back then, Abra secured Preserver-Spaces = "True"> A fundraiser in the amount of $ 55 million, supported by some prominent names in the financial sector like American Express.

The trading center reveals Preserver-Spaces = "True"> in 2022 two financial institutions named Abra Bank (with a focus on American customers) and Abra International (for Global users).

"We believe that this is a crucial moment for Abra that brings us closer to our mission to make financial independence and well-being accessible to everyone and anywhere," said the company at the time.

However, the ongoing crypto winter, which various organizations for digital assets were affected, demanded its tribute to Abra, and the company had to dismiss 5 % of its employees last summer.

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