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Author: Turner Wright, Cointelegraph; Compilation: Deng Tong, Bit Chain Vision Realm
The US Securities and Exchange Commission announced thatThe cryptocurrency platform ABRA has agreed to reach a settlement for the company’s offer and sales of the company’s non -registered loan products.
The regulatory agency stated in the notice on August 26 that Plutus Lending, which has carried out business in the name of Abra, “neither acknowledges nor the allegations of the SEC”, and has agreed to pay the civil fines ruled by the court and prohibit the company from violating the securities law’s ban.EssenceSEC has charged the lending platform, accusing him of an offense and sales of ABRA EARN, and operating as an unregistered investment company.
“It is said that ABRA sold its own securities and avoided the applicable terms of” Investment Company Law “. These clauses provided investors with many important protection, including minimizing the conflict of interest,” “STACY BOGERT, deputy director of SEC Law Enforcement.”This incident once again reflects that when conducting law enforcement surveys, we are restricted by economic reality rather than surface labels.”
Reach reconciliation with regulatory agencies
SEC accuses ABRA’s way of selling its Earn service into an investor “automatic” to earn interest, but the result has created income for itself.The platform began to provide ABRA EARN to American investors in July 2020, which prompted about $ 600 million in assets globally during its peak.
ABRA spokesman pointed out that the platform has stopped Abra Earn’s service in 2022 and in 2023, the assets of the US users who the US users they serve to their Abra Trade account.They added that Plutus Lending “agreed to continue to follow the securities law.”
The SEC notification was released after ABRA and its chief executive William Barhydt reached a settlement with 25 U.S. state regulators in June.In 2020, the SEC and the Commodity Futures Trading Commission fined ABRA 300,000 US dollars because the company provided “securities -based trading” to retail investors without appropriate registration.
