April 10, 2024
SANTA FE – The Securities Division of the New Mexico Regulation and Licensing Department announced today that it has reached a settlement agreement in principle with cryptocurrency asset platform, Abra, for violating state securities regulations.
The group of affiliated companies commonly known as Abra include Plutus Financial Holdings Inc., Plutus Financial Inc., Plutus Lending LLC, and Abra Boost LLC. Abra offered and sold interest-bearing cryptocurrency depository products referred to as Abra Boost and Abra Earn.
As part of the settlement, the companies are required to notify all New Mexico consumers with open accounts containing crypto assets with the companies that they are winding down U.S. operations and 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 New Mexico, 41 residents still have cryptocurrencies on the Abra platform valued at approximately $9,298.29.
The companies, controlled by William “Bill” Barhydt, who is also a party to the settlement, 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.
“Although firms are creating new products tied to evolving technologies, they must continue to comply with existing securities laws,” said New Mexico Securities Division Acting Director Benjamin Schrope. “The Securities Division will continue to safeguard New Mexicans who purchase cryptocurrency in the same manner as investors purchasing stocks, bonds, and other traditional products.”
As part of the settlement, Abra and Barhydt will enter a consent order with the Securities Division requiring that they cease and desist from offering or selling unregistered securities in New Mexico and ordering them to pay an administrative penalty, which will be suspended if they comply with the process to return all assets owned by New Mexico consumers before April 28, 2024.
“The Securities Division strongly encourages clients residing in New Mexico to withdraw their assets as soon as possible,” said Schrope. “We want to ensure the clients who invested in these products are not leaving their earnings unclaimed.”
The Securities Division stands ready to assist and answer any questions that may arise and encourages investors to contact the division if they suspect they have been offered a questionable investment. Please contact the New Mexico Securities Division at 1-800-704- 5533 or by visiting rld.nm.gov/securities-division.