New Jersey’s Attorney General, the Division of Consumer Affairs, and the Bureau of Securities have urged investors to immediately withdraw funds from crypto platform Abra. This follows a multi-state investigation into the platform’s alleged violations of state securities laws. Affected investors will receive refunds, with crypto assets being converted to U.S. dollars.
New Jersey Investors Advised to Withdraw Funds From Abra Amid Legal Scrutiny
New Jersey (NJ) Attorney General Matthew J. Platkin, the Division of Consumer Affairs, and the New Jersey Bureau of Securities announced on Monday that investors in the state should immediately withdraw their funds from crypto trading and lending platform Abra.
This follows a multi-state investigation into the company’s sale of interest-bearing accounts, which allegedly violated state securities laws. Abra, led by CEO William John “Bill” Barhydt, raised over $116 million nationwide, including $2.97 million from New Jersey investors. The investigation, driven by the Texas State Securities Board, has resulted in Abra winding down its U.S. operations, the NJ regulators detailed. Bureau Chief Elizabeth M. Harris emphasized:
The Bureau strongly encourages New Jersey investors to withdraw their assets or accept the checks from the Abra platforms as soon as possible.
“The agreement announced today requires Abra to return the funds it raised through the unlawful sale of unregistered securities in our state,” said Cari Fais, Acting Director of the Division of Consumer Affairs. “These funds belong to New Jersey investors, and we want to make sure investors get them back.”
The announcement further informs investors:
Under the terms of the agreement, virtual assets in New Jersey accounts on the Abra platform will be converted to U.S. dollars and investor refund checks will be issued for amounts $10 and over. Amounts less than $10 will be left on the platform for investors to withdraw.
“Any uncashed checks or funds left on the Abra platform will be sent to the New Jersey Department of the Treasury’s Unclaimed Property Administration, where they can be claimed by respective owners at a later date,” the announcement notes, adding that the agreement requires Abra to notify New Jersey customers how to remove assets from its platform.
What do you think about New Jersey’s regulators urging investors in the state to promptly withdraw funds from the Abra platform? Let us know in the comments section below.
