SEC Accuses Abra of Unregistered Crypto Asset Securities Transactions

The SEC charged Plutus Lending LLC, known as Abra, for not registering its crypto lending product, Abra Earn.

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Abra was also accused of operating as an unregistered investment company.

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Abra Earn was launched around July 2020, allowing U.S. investors to lend their crypto assets for interest.

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At its peak, Abra Earn had about $600 million in assets, with nearly $500 million from U.S. investors.

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Abra marketed Abra Earn as a way to earn interest automatically on crypto assets.

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The SEC claims Abra used investors' crypto assets to generate income and fund interest payments.

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Abra Earn was considered a security and didn't meet SEC registration exemptions.

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Abra allegedly operated as an unregistered investment company for at least two years.

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In June 2023, Abra began shutting down the Abra Earn program and advised customers to withdraw their assets.

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Abra has agreed to an injunction and will pay civil penalties without admitting or denying the SEC's claims.

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