Crypto Firm Abra Settles with SEC Over Unregistered Securities

The US Securities and Exchange Commission has settled with crypto lending platform Abra after charging the startup with selling unregistered securities to consumers and operating as an unregistered investment company.

Plutus Lending LLC, doing business as Abra, agreed to settle with the SEC without admitting or denying the agency’s allegations. The startup will pay civil penalties which are yet to be determined by the court. Abra Earn allowed retail investors to deposit their crypto assets in return for interest. Abra Earn was promoted as a way for individuals to generate returns “auto-magically.” At its height, the Abra Earn program had roughly $600 million in assets, nearly $500 million from US investors, according to a SEC statement Monday.