Ohio Division of Financial Institutions Joins Multistate Settlement with Abra to Return Cryptocurrency

A multistate investigation found that Abra operated a mobile application for buying, selling, trading and investing in cryptocurrency without first obtaining the required licenses. Under the settlement, Abra agreed to cease accepting virtual asset allocations from U.S. Abra Trade Account customers into their products and services,and ceased making, buying, selling, or trading cryptocurrencies available to U.S. Abra Trade customers last summer. The settlement terms require Abra to refund any remaining virtual assets on its platform for U.S. Abra Trade customers in Ohio and the other 24 settling states.

"Our role is to protect consumers by preventing unlicensed activity," said DFI Superintendent Kevin Allard. "Companies that do not operate within Ohio's laws will be held accountable."

Additionally, under the settlement, Barhydt agrees that, for five years, he will not participate in any capacity in the business or affairs of any money transmitter or money services business licensed or required to be licensed in the settling states other than as a passive investor.

When the investigation began, Ohio had a total of 3,693 consumers with accounts on the company's platform, 733 of whom held a balance totaling $2,137,705.20. Based on information provided by the company on June 11, 2024, there are no remaining outstanding obligations in the state.

Ohio and the other states participating in the settlement agreed to forgo a monetary penalty of $250,000 per jurisdiction to facilitate customer repayment. Once the remaining virtual assets are returned pursuant to the settlement terms, up to $82.1 million will be paid back to affected consumers. Since all impacted Ohio consumers liquidated their assets from the platform, they will not be eligible to receive settlement funds. The investigation and settlement took place in conjunction with a separate investigation conducted by state securities regulators.

Consumers who have questions about the settlement or believe they may have been impacted by Abra's unlicensed activity should contact the Ohio Division of Financial Institutions at 614-728-8400or by clicking here. Consumers can also visit NMLS Consumer Accessto verify that a company is licensed to do business in Ohio and view past enforcement actions.

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About the Ohio Division of Financial Institutions

The Ohio Division of Financial Institutions is responsible for regulating state-chartered financial institutions and consumer finance companies. It ensures the people of Ohio have access to safe and sound financial services while promoting fair and transparent practices that empower consumers and businesses alike.