State of Nevada settles with financial company over unlicensed crypto operation

LAS VEGAS, Nev. (KOLO) – The State of Nevada has settled with financial company Abra over cryptocurrency licensing.

The Financial Institutions Division joined 24 other state financial regulatory agencies in taking collective action against the company and its largest equity owner, Bill Barhydt, which they say was operating a cryptocurrency company without the required state licensing.

A multistate investigation found that the company had operated a mobile app for buying, selling, trading and investing cryptocurrency without obtaining the proper licensing.

Per the settlement agreement, Abra will cease accepting virtual asset allocations from U.S. Abra Trade Account customers into their products and services, and cease making, buying, selling, or trading cryptocurrencies available to their customers last summer.

The settlement also requires Abra to refund any remaining virtual assets on its platform for customers in the settling states.

“Our role is to protect consumers by preventing unlicensed activity,” said Sandy O’Laughlin, Financial Institutions Division Commissioner. “Companies that do not operate within Nevada’s laws will be held accountable.”

Barhydt also agreed to not participate in any capacity in the business or affairs of money transmission or money services for five years.

Nevada and the other states in the settlement agreed to forgo the monetary penalty of $250,000 per jurisdiction to allow Abra to repay customers. Once the remaining virtual assets are returned, up to $82.1 million will be paid back to customers.

Copyright 2024 KOLO. All rights reserved.