Crypto Company to Refund NJ Investors in Securities Probe

NJ Investors Urged to Redeem Funds Remaining on “Abra” Trading & Lending Platform.Photo byMorristown Minute

Crypto investment company Abra agrees to refund remaining assets to New Jersey investors following a multistate securities investigation.

NEW JERSEY - Attorney General Matthew J. Platkin, along with the Division of Consumer Affairs and the Bureau of Securities, is urging New Jersey investors to withdraw any remaining virtual assets from the Abra trading and lending platform as the company winds down its U.S. operations. This comes after a multistate investigation revealed that Abra sold interest-bearing crypto accounts in violation of state securities laws.

“We have made it clear that firms creating new products tied to evolving technologies are not exempt from our securities laws,” said Attorney General Platkin.

“The agreement announced today requires Abra to return the funds it raised through the unlawful sale of unregistered securities in our state,” said Cari Fais, Acting Director of the Division of Consumer Affairs. “These funds belong to New Jersey investors, and we want to make sure investors get them back.”

The California-based cryptocurrency company, along with its CEO and founder William John “Bill” Barhydt, has agreed to a settlement in principle with the Bureau of Securities. As part of this settlement, Abra will refund all virtual assets left on the platform, converting them to U.S. dollars. Refund checks will be issued for amounts of $10 or more, while smaller amounts will be left on the platform for investors to withdraw. Any unclaimed funds will be transferred to the New Jersey Department of the Treasury’s Unclaimed Property Administration, where they can be claimed later.

Crypto investment company Abra agrees to refund remaining assets to New Jersey investors following a multistate securities investigation.Photo byAbra

“The Bureau strongly encourages New Jersey investors to withdraw their assets or accept the checks from the Abra platforms as soon as possible,” said Bureau Chief Elizabeth M. Harris. “We want to ensure that clients who purchased Abra financial products are able to recoup their investments.”

New Jersey investors are urged to remove their funds from the Abra platform as soon as possible. Those with account balances under $10 can withdraw their funds through the Abra app, and any withdrawal issues can be addressed by contacting support@abra.com.

Abra’s settlement follows coordinated enforcement actions by a working group of state securities regulators, led by the Texas State Securities Board. The investigation focused on the offers and sales of Abra’s interest-bearing accounts, known as “Abra Boost” and “Abra Earn,” which raised $116 million nationwide, including more than $2.97 million from New Jersey residents.

Abra began winding down its U.S. retail operations on June 15, 2023, following the entry of these enforcement actions. Although many clients have already withdrawn their assets, approximately $200,000 in cryptocurrencies belonging to New Jersey investors remain on the Abra platform.

Under the terms of the settlement, Abra and Barhydt will enter a consent order with the Bureau, agreeing to cease offering or selling unregistered securities to New Jersey residents. They will also face an administrative penalty, which will be suspended provided they comply with the asset return process.

The Bureau of Securities, responsible for protecting investors and regulating the securities industry in New Jersey, urges investors to always “Check Before You Invest.” Information on the registration status and disciplinary history of financial professionals can be obtained by contacting the Bureau toll-free at 1-866-I-INVEST (1-866-446-8378) or by visiting www.NJSecurities.gov. Investors can also reach out to the Bureau for assistance or to report concerns about financial professionals or investments in New Jersey.

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