State Of Oregon Settles With Cryptocurrency Platfom
Portland, Ore. — The Oregon Division of Financial Regulation (DFR) has announced a settlement agreement in principle with a cryptocurrency asset platform for breaching state securities regulations.
The involved companies, collectively known as Abra, comprised Plutus Financial Holdings Inc., Plutus Financial Inc., Plutus Lending LLC, and Abra Boost LLC. They offered and sold interest-bearing cryptocurrency depository products labeled as Abra Boost and Abra Earn.
Per the settlement terms, Abra is obligated to inform all Oregon consumers holding open accounts with crypto assets that the U.S. operations are being wound down. Customers are urged to transfer any remaining crypto assets from the platform within seven days of receiving notification.
Should assets valued at $10 or more remain after the deadline, they will be converted to fiat currency, and a check or alternative instrument will be dispatched to the consumer’s last known address. Currently, 167 residents in Oregon possess cryptocurrencies on the Abra platform, totaling approximately $32,387.14.
Controlled by William “Bill” Barhydt, who is also party to the settlement, the companies provided Abra Earn to all U.S. clients and Abra Boost exclusively to accredited U.S. clients. Investors earned interest by depositing digital assets with Abra, authorizing the platform to lend client assets to institutional borrowers.
DFR Administrator TK Keen emphasized the importance of compliance with existing securities laws, stating that while firms innovate with new products linked to evolving technologies, adherence to regulations remains crucial. The division asserts that investors purchasing securities tied to digital assets should receive equivalent protections as those investing in traditional products like stocks and bonds.
As part of the settlement, Abra and Barhydt will enter a consent order with DFR, mandating them to cease and desist from offering or vending unregistered securities in Oregon. They are also directed to pay an administrative penalty, which will be waived upon compliance with the procedure to return all assets owned by Oregon consumers before April 25, 2024.
Keen urges clients in Oregon to withdraw their assets promptly, advising completion within seven days of receiving notice from Abra. The DFR remains available to assist and address consumers’ inquiries regarding the settlement.
