Crypto lender Abra has been insolvent since March, says Texas regulator

Crypto lending firm Abra, which once handled more than $116 million in assets, had allegedly committed securities fraud and has been insolvent since March 31, according to Texas regulators.

In a June 15 enforcement

On Sep. 12, 2022 Abra announced plans to become the first United States-based bank that would allow clients to deposit digital assets. The venture was expected to launch at the beginning of 2023.

We have some BIG news. Today we’re announcing the formation of Abra Bank and the launch of Abra Boost, Abra’s new staking and yield offering.  

Lots to unpack…  /https://t.co/eQMFS5mKmT

— Bill Barhydt (@billbarhydt) September 12, 2022

However, following the collapse of FTX in November last year, Abra began laying off employees and “restructuring” to minimize overheads.

On July 13, 2020, the Securities and Exchange Commission and Commodity Futures Trading Commission issued Abra with a joint fine of $300,000 for offering “security-based swaps” to retail investors without the proper registration in addition to “failing to transact those swaps on a registered national exchange.”

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