The US SEC has charged the crypto firm Abra in the latest crackdown for offering unregistered digital assets services to its clients. In a recent press release, the US Securities and Exchange Commission said that the regulators have charged Plutus Lending LLC, which operates under the name Abra, for offering crypto solutions without registering with the agency.
So, let’s explore the report and the charges against the crypto firm in detail.
US SEC Charges Abra For Crypto Violations
The complaint from the agency, as highlighted in the US SEC press release, centers on the crypto firm’s lending product “Abra Earn”. The lending product allowed US investors to lend their crypto assets to the firm in exchange for interest payments.
According to the agency, the crypto firm started offering this service in July 2020 without registering with the regulatory body. At its peak, the lending product managed assets worth $600 million, of which around $500 million came only from the US traders.
The agency claimed that the firm marketed the program as a way for traders to “auto-magically” earn interest. On the other hand, the firm has used the investors’ crypto assets for its own profit, the report added.
The post Breaking: US SEC Cracks Down On Abra For Unregistered Crypto Offerings appeared first on CoinGape.
