Cryptocurrency Asset Platform Settles with Oregon over Violations

The Oregon Division of Financial Regulation reached a settlement agreement in principle with a cryptocurrency asset platform for violating state securities regulations.

The group of affiliated companies known as Abra — Plutus Financial Holdings Inc., Plutus Financial Inc., Plutus Lending LLC and Abra Boost LLC — offered and sold interest-bearing cryptocurrency depository products referred to as Abra Boost and Abra Earn.

The settlement requires the companies to notify all Oregon consumers with open accounts containing crypto assets with the companies that they are winding down U.S. operations and to encourage consumers to move any remaining crypto assets from the platform.

Consumers have at least seven days from the date they receive notice to remove their assets from the Abra platform. Assets remaining after that date with a value of $10 or more will be converted to fiat and a check or other instrument will be sent directly to the consumer’s last known address.

In Oregon, 167 residents still have cryptocurrencies on the Abra platform valued at about $32,387.14, according to the division.

The companies — controlled by William “Bill” Barhydt, who is also a party to the settlement — reportedly offered Abra Earn to all U.S. clients and Abra Boost to accredited U.S. clients. Investors in both programs earned interest by depositing digital assets with Abra and authorizing Abra to lend client assets to institutional borrowers, according to the department.

As part of the settlement, Abra and Barhydt will enter a consent order with DFR requiring that they cease and desist from offering or selling unregistered securities in Oregon and ordering them to pay an administrative penalty, which will be suspended if they comply with the process to return all assets owned by Oregon consumers before April 25.