The Oregon Division of Financial Regulation
Press Release,
March 27, 2024
Salem – The Oregon Division of Financial Regulation (DFR) has reached a settlement agreement in principle with a cryptocurrency asset platform for violating state securities regulations.
The group of affiliated companies – Plutus Financial Holdings Inc., Plutus Financial Inc., Plutus Lending LLC and Abra Boost LLC – offered and sold interest-bearing cryptocurrency depository products referred to as Abra Boost and Abra Earn.
As part of the settlement, the companies – commonly known as Abra – are required to notify all Oregon consumers with open accounts containing crypto assets with the companies that they are winding down U.S. operations and to encourage consumers to move any remaining crypto assets from the platform.
Consumers have at least seven days from the date they receive notice to remove their assets from the Abra platform. Assets remaining after that date with a value of $10 or more will be converted to fiat and a check or other instrument will be sent directly to the consumer’s last known address.
In Oregon, 167 residents still have cryptocurrencies on the Abra platform valued at about $32,387.14.
The companies – controlled by William “Bill” Barhydt, who is also a party to the settlement – offered Abra Earn to all U.S. clients and Abra Boost to accredited U.S. clients. Investors in both programs earned interest by depositing digital assets with Abra and authorizing Abra to lend client assets to institutional borrowers.
“Although firms are creating new products tied to evolving technologies, they must continue to comply with existing securities laws,” said DFR Administrator TK Keen. “The division will continue to ensure that investors purchasing securities tied to digital assets are afforded the same protections as investors purchasing stocks, bonds and other traditional products.”
As part of the settlement, Abra and Barhydt will enter a consent order with DFR requiring that they cease and desist from offering or selling unregistered securities in Oregon and ordering them to pay an administrative penalty, which will be suspended if they comply with the process to return all assets owned by Oregon consumers before April 25, 2024.
“We strongly encourage clients in Oregon to withdraw their assets as soon as possible, but certainly within seven days of receiving notice from Abra,” said Keen. “We are available to assist and answer consumers’ questions about this settlement.”
###
The Division of Financial Regulation is part of the Department of Consumer and Business Services, Oregon’s largest business regulatory and consumer protection agency. Visit dfr.oregon.gov and dcbs.oregon.gov.
Disclaimer: Articles featured on Oregon Report are the creation, responsibility and opinion of the authoring individual or organization which is featured at the top of every article.