Abra, Crypto Firm, Reportedly Declared Insolvent by Texas State Regulators in Cease-and-Desist Order
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The Texas State Securities Board issued an urgent cease-and-desist order claiming that the cryptocurrency company Abra is “insolvent or nearly insolvent.”
According to the statement, a working committee of state securities management has been looking into Abra, and in March 2023, they spoke with William Barhydt, the company’s creator.
According to an emergency order from the Texas State Securities Board, the #cryptocurrency firm Abra is “insolvent or nearly insolvent.” pic.twitter.com/LY7ARu6Xfu
— Bella Queen NFT (@BellaQueenNFT) June 16, 2023
Texas State Regulators Issue Cease-and-Desist Order, Citing Insolvency Claims Against Crypto Firm Abra
Abra and its network of assistants are the subjects of an immediate cease-and-desist order from the Texas State Securities Board (TSSB). According to the letter, Abra and its related businesses are “collectively insolvent or nearly insolvent.”
Plutus Financial, Plutus Lending, Abra Boost, and William John “Bill” Barhydt, the company’s creator, were also named in the series.
Texas State Regulators Issue Cease-and-Desist Order, Citing Insolvency Claims Against Crypto Firm Abra
The Texas State Securities Board (TSSB) has issued an emergency cease-and-desist order against the company Abra and its network of subsidiaries. The notice alleges that Abra and… pic.twitter.com/E2NVNfPF4X— Epik (@BabuRaoCrypto) June 16, 2023
According to the TSSB complaints, Barhydt allegedly reorganised the business into many firms in 2022 and “sold investments in Abra Earn, a digital asset storage account, to unaccredited and accredited investors in the United States.”
Additionally, according to the TSSB order, “a working group of state securities regulators has been studying Abra.”
On or about March 31, 2023, the working group interviewed Barhydt as part of their investigation. The interview allegedly showed that all “parties collectively operating as Abra” were bankrupt or on the verge of default.
The commission maintains that Abra Earn, Plutus Financial, Plutus Lending, and Barhydt broke state securities laws.
#BlackHistoryisHistory365 begins tomorrow. On March 31,2023 I will tag one or more people and invite them to post about influential, innovative and ordinary black people making history in America in their industry for the month of April. And so on and so on til 2/1/2024 pic.twitter.com/iBwJnGo4aH
— Michele Shannon (@Shannon0Michele) February 28, 2023
The judgment further claims that Barhydt and the parties “engaged in fraud” and made “statements that were materially deceptive or otherwise likely to deceive the public.”
The injunction also states that Abra Boost products “are securities,” and state leaders seek an immediate halt to all business activity in Texas by the company. The Texas State Securities Commissioner, Travis J. Iles, has signed the order.
Investors in Abra are guided by the Texas State Securities Board to access and analyze the enforcement actions quickly. Allegations involving the exposure of information, mainly financial information, are part of the enforcement actions.
Abra has not yet had the chance to refute the charges, according to a press report on the TSSB website.
Web3 identity passport network @QuadrataNetwork raised $7.5M in seed round led by @dragonfly_cap. @FTI_Global, Abra, @GSR_io, @OrangeDAOxyz, @AlexFellowsFund, @GreatPointVC and @AugustCapital are among investors.https://t.co/V9TSS8Ts8z pic.twitter.com/XZkyoguHR5
— Crypto Fundraising #StandWithUkraine 🇺🇦 (@Crypto_Dealflow) July 12, 2022
The issue has not been addressed on Abra’s social media platforms as of the time of writing, and Barhydt’s latest tweet, which was posted on June 14, has since been deleted. Records show that on June 12, 2023, the founder of Abra tweeted about fake intelligence (AI).
