Kofi Mensah Abra, a cryptocurrency firm, has been hit with an emergency cease-and-desist order by the Texas State Securities Board (TSSB) amid claims of insolvency. The TSSB alleges that Abra and its affiliated companies are either insolvent or on the verge of insolvency. The order also includes Plutus Financial, Plutus Lending, Abra Boost, and William John “Bill” Barhydt, the founder of Abra.
According to the TSSB, in 2022, Barhydt restructured Abra into multiple entities and sold investments in Abra Earn, a digital asset depository account, to both accredited and unaccredited investors in the United States. The TSSB’s order states that a group of state securities regulators has been conducting an investigation into Abra. Barhydt was interviewed by the regulators’ working group in March 2023, and during the interview, it was allegedly revealed that all the entities operating as Abra were insolvent or on the brink of insolvency. The TSSB accuses Plutus Financial, Plutus Lending, and Barhydt of violating state securities laws through Abra Earn.
The cease-and-desist order further claims that Barhydt and the parties involved engaged in fraudulent activities and made misleading statements likely to deceive the public. The order also declares that Abra Boost products qualify as securities. The state regulators demand an immediate halt to all operations by Abra in Texas. The order has been signed by Travis J. Iles, the Texas state securities commissioner.
A press release on the TSSB website encourages Abra investors to promptly access and review the enforcement actions, which include allegations related to information disclosure, including financial information. As of now, Abra’s social media platforms have not addressed the issue, and Barhydt’s latest tweet, posted on June 14, has been deleted. Prior to that, according to records, Barhydt tweeted about artificial intelligence (AI) on June 12, 2023.
We would like to hear your thoughts on the regulatory crackdown faced by Abra and the allegations of insolvency. Please share your opinions and comments on this matter below.
Table Of Contents
Frequently Asked Questions (FAQs) about insolvency
What is the emergency cease-and-desist order issued against Abra by Texas State Securities Board?
The emergency cease-and-desist order issued by the Texas State Securities Board alleges that Abra, a cryptocurrency firm, is either insolvent or on the verge of insolvency. The order also includes allegations of violations of state securities laws, fraudulent activities, and misleading statements by Abra and its founder, William John “Bill” Barhydt.
What prompted the regulatory crackdown on Abra?
The regulatory crackdown on Abra was prompted by an investigation conducted by a working group of state securities regulators. During the investigation, it was allegedly revealed that the entities operating as Abra were insolvent or close to insolvency. Additionally, the restructuring of Abra into multiple entities and the sale of investments in Abra Earn to both accredited and unaccredited investors in the United States raised concerns and triggered the regulatory action.
What are the allegations against Abra and its founder?
Abra and its founder, William John “Bill” Barhydt, are facing allegations of insolvency, violations of state securities laws through Abra Earn, engaging in fraudulent activities, and making materially misleading statements likely to deceive the public. The Texas State Securities Board has issued a cease-and-desist order demanding an immediate halt to all operations by Abra in Texas.
How has Abra responded to the allegations and regulatory action?
As of now, Abra’s social media platforms have not addressed the matter, and the founder’s recent tweet, posted on June 14, has been deleted. It is unclear how Abra plans to respond to the allegations and the regulatory action taken by the Texas State Securities Board.
What should Abra investors do in response to the regulatory action?
The Texas State Securities Board encourages Abra investors to promptly access and review the enforcement actions, which include allegations related to information disclosure, including financial information. It is important for Abra investors to stay informed and assess the impact of the regulatory action on their investments.
More about insolvency
- Emergency Cease-and-Desist Order from Texas State Securities Board
- Abra Official Website
- Texas State Securities Board Official Website
2 comments
another day, another crypto firm in trouble. abra facing regulatory crackdown in texas. gotta be careful where you invest your money. always do your research and stay away from shady projects.
woah, abra getting hit hard by texas regulators. allegations of fraud and insolvency. this is why we need more regulation in the crypto space. protect the investors and weed out the bad actors!