Regulators in Texas have alleged that crypto lender Abra, also known as Plutus Financial, Abra Boost, and Plutus Lending, has been insolvent since at least March 31, 2021. The Texas State Securities Board issued an emergency cease-and-desist order, claiming that Abra and its founder William Barhydt misled the public and committed securities fraud.
The order alleges that Abra made offers of investments in Abra Earn in Texas containing statements that were materially misleading or otherwise likely to deceive the public. It also claims that Abra has been transferring assets to Binance Holdings Limited, and that as of February 2021, Abra had assets valued at $118,581,732 at Binance.com.
Regulators interviewed Barhydt on March 31, 2021, and concluded that Abra was insolvent. Barhydt did not contest the conclusion, the filing said. Despite this, Abra posted on an official social media platform that there is no truth that Abra is bankrupt or about to be. It continues to operate normally like it always has throughout multiple bear markets since its launch back in 2014.
A hearing on the matter has not yet been scheduled, but customers are still allowed to withdraw funds. Abra has a hair under $30 million on Babel Finance, $30 million on Genesis, $10 million on Three Arrows Capital, and $8.8 million on Auros Tech Limited.