- Abra, a cryptocurrency lending platform, has settled a legal dispute with the Texas State Securities Bureau (TSSB).
- Over 12,000 investors can now withdraw approximately $13 million worth of previously frozen cryptocurrency from interest-bearing accounts.
- The settlement, concluded on Monday, brings closure to a lawsuit that led to funds being frozen on Abra’s platform last summer.
Cryptocurrency lending platform Abra has successfully resolved a legal dispute with the Texas State Securities Bureau (TSSB), signaling positive news for over 12,000 investors. The settlement, which reached its conclusion on Monday, enables investors to withdraw around $13 million worth of cryptocurrency that was previously frozen on Abra’s platform.
The settlement marks the end of a lawsuit initiated last summer, with the Texas Securities Commissioner (TSC) contending that Abra’s Boost and Earn products should be treated as securities, falling under the regulatory jurisdiction of the agency.
Under the terms of the settlement, approximately 12,000 investors now have the opportunity to reclaim their cryptocurrency from interest-bearing accounts such as Abra Boost and Abra Earn. The total value of these assets amounted to around $13.6 million last year. The resolution aligns with the TSC’s position, providing a framework for investors to regain access to their funds. It’s worth noting that the TSC has not issued a formal comment on the settlement as of now.
Should the settlement be maintained, it will dismiss enforcement actions related to Abra’s Earn and Boost investment products. These products, offered during a period of financial challenges for the company, were classified by the TSC as securities subject to regulatory oversight.
Abra is now obligated to initiate withdrawals and fulfill other stipulations outlined in the agreement within the next 30 days. Investors with balances exceeding $10 will receive notifications regarding the withdrawal process, which must be completed within a specified seven-day window.
This resolution brings a welcome conclusion to the legal disputes that had hindered investors’ access to their funds, offering relief to users. It ensures that investors in Texas, where the lawsuit originated, can now claim their cryptocurrency holdings. Any unclaimed funds will be converted into U.S. dollars and distributed to Texas investors via checks, adhering to the terms outlined in the settlement.
