Maine settles with unlicensed cryptocurrency trader

Maine customers of a cryptocurrency trader will receive a small settlement for unlicensed transactions conducted in the state, and a larger payout may be coming.

The settlement comes as part of a multistate action by the Maine Bureau of Consumer Credit Protection and the financial regulatory agencies of 24 other states against Plutus Financial Inc., Abra Trading LLC, Plutus Financial Holdings Inc., Plutus Lending LLC, and the companies’ CEO and largest equity owner William Barhydt.

A multistate investigation found that Barhydt and his companies, referred to collectively as “Abra,” operated a mobile application for buying, selling, trading and investing in cryptocurrency without the required state licenses.

Under the settlement, Abra agreed to cease accepting virtual assets from its customers into the companies’ products and services and stop making, buying, selling or trading cryptocurrencies available to its customers as of June 15, according to the Maine Bureau of Consumer Credit Protection. Abra must also refund any remaining virtual assets on its platform for its customers in the settling states.

Abra’s Maine customers will be repaid roughly $7,195.43 for 42 unlicensed transactions under the terms of the settlement and could get more in the future, according to the bureau.

Additionally, Barhydt agreed not to participate for five years in any financial services businesses in the settling states other than as a passive investor.

Maine and the other states agreed to forgo a penalty of $250,000 per jurisdiction “to facilitate customer repayment,” according to the bureau.

“Once the remaining virtual assets are returned pursuant to the settlement terms, up to $82.1 million will be paid back to consumers,” the bureau said in a news release. The bureau did not say how much of that total would go to Maine customers.

Those who believe they may have been impacted by Abra’s unlicensed activity are encouraged to contact the bureau at 800-332-8529 or 207-624-8527.