Abra
Key Data
- Trading Name: Abra
- Legal Entity: Abra Capital Management LP
- Activities: Cryptocurrency Services
- Location: USA
- Regulations: not considered fully regulated
- Key People: Bill Barhydt
- Latest news: Abra
- Latest update: September , 2024
Abra is a financial technology company offering a suite of cryptocurrency services, including a digital wallet for storing assets, a trading platform for buying and selling cryptocurrencies, a service that allows users to earn interest on their digital assets, and a lending feature that enables borrowing using cryptocurrency as collateral.
Offering
It provides trading, lending, borrowing, and wealth management solutions through three main divisions: Abra Prime (for institutional clients), Abra Private (for high-net-worth individuals and families), and Abra Treasury (for corporates and non-profits).
The platform specializes in customized structured products, collateralized lending, and treasury solutions with a focus on secure, compliant digital asset management.
Customer Review
- Trustpilot: 224 Reviews with 1,3 Stars with
Regulation
Abra is currently not considered fully regulated in the United States. The company has faced several regulatory actions from state and federal authorities, primarily for operating without the necessary licenses. Abra reached a settlement with 25 U.S. state financial regulators, agreeing to return up to $82 million in assets to affected customers and cease certain U.S. operations, including offering its crypto products and services to retail clients.
The company has also settled charges with the SEC for unregistered securities offerings linked to its Abra Earn product. As part of these settlements, Abra’s CEO William Barhydt is restricted from participating in money transmitter or money services businesses within the states involved for five years.
Overall, Abra has ceased many of its U.S. operations and is winding down its retail services in the country to comply with these regulations. While it continues to operate through Abra Capital Management as an SEC-registered investment advisor, its broader retail offerings in the U.S. remain suspended.
Compliance Issues
The Texas State Securities Board has ordered Abra to return funds to Texas investors and imposed an $11 million fine as part of a consent order (ORDER NO. ENF-24-CDO-1881). However, the fine will be suspended if Abra successfully complies with the terms for asset return. If the company fails to meet these conditions or undergoes bankruptcy, the fine will be reinstated and become immediately payable. This action replaces a previous cease-and-desist order and is part of broader regulatory scrutiny faced by the platform across multiple U.S. states.
Conclusion and Rating
Abra has been facing significant regulatory challenges and compliance issues in multiple U.S. states, including violations of securities laws and operating without the required licenses. As a result, it has been subject to enforcement actions, fines, and settlements, leading to a partial withdrawal of its retail services in the U.S. From a compliance standpoint, this places Abra in the Orange category, indicating elevated risk due to ongoing regulatory scrutiny and the need for strict monitoring.
On the customer side, Abra has received numerous complaints regarding poor customer service, difficulties in withdrawing funds, and transparency issues. These factors contribute to a Red rating from a customer perspective, signaling a high-risk profile and a need for caution when using their services.
Overall Compliance Rating: Orange
Customer Experience Rating: Red
