Key Takeaways
- Around 12,000 investors can now reclaim their crypto from interest-bearing accounts, totalling around $13.6 million in value last year.
- Abra is required to initiate withdrawals and fulfil other stipulations outlined in the agreement within the next 30 days.
Cryptocurrency lending platform Abra has resolved a legal dispute with the Texas State Securities Bureau (TSSB), paving the way for over 12,000 investors to withdraw approximately $13 million worth of previously frozen cryptocurrency. The settlement, which concluded on Monday, marks the end of a lawsuit that led to funds being frozen on Abra’s platform last summer.
Under the settlement terms, approximately 12,000 investors can now reclaim their cryptocurrency from interest-bearing accounts like Abra Boost and Abra Earn, totaling around $13.6 million in value last year. The resolution comes after the Texas Securities Commissioner (TSC) asserted that Abra’s Boost and Earn products should be treated as securities falling under the regulatory jurisdiction of the agency.
The agreement, recognizing the TSC’s position, establishes a framework for investors to regain access to their assets. Notably, the TSC is yet to provide a formal comment on the settlement.
If maintained, the settlement will dismiss enforcement actions related to Abra’s Earn and Boost investment products, which were offered during a period of financial challenges for the company. The TSC claimed that these products should be classified as securities, subject to the agency’s regulatory oversight.
Abra is now required to initiate withdrawals and fulfill other stipulations outlined in the agreement within the next 30 days. Clients with balances exceeding $10 will receive notifications about the withdrawal process, which must be completed during a specified seven-day window.
This resolution brings closure to the legal disputes that had prevented investors from accessing their funds, providing relief for users. The settlement 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, in accordance with the settlement terms.
