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Maine Settles with Unlicensed Cryptocurrency Trader
Maine customers of a cryptocurrency trader will receive small compensation for unlicensed transactions conducted in the state, and a larger payout may be coming.
The settlement is part of a multistate action brought by the Maine Bureau of Consumer Credit Protection and financial regulatory agencies in 24 other states against Plutus Financial Inc., Abra Trading LLC, Plutus Financial Holdings Inc., Plutus Lending LLC and the company CEO and largest stock owner William Barhydt.
A multistate investigation found that Barhydt and his companies, collectively referred to as “Abra,” operated a mobile application to buy, sell, trade, and invest in cryptocurrency without the required state licenses.
Under the settlement, Abra agreed to stop accepting virtual assets from its customers into the company’s products and services and to stop making, buying, selling or trading cryptocurrencies available to its customers starting June 15, according to the Maine Bureau of Consumer Credit Protection. Abra must also refund any remaining virtual assets on its platform for its customers in Settlement States.
According to the bureau, Abra customers in Maine will be reimbursed approximately $7,195.43 for 42 unlicensed transactions under the terms of the settlement, and may receive more in the future.
Additionally, Barhydt agreed not to participate for five years in any financial services business in the settlement states other than as a passive investor.
According to the office, Maine and the other states have agreed to waive a $250,000 penalty per jurisdiction “to facilitate customer reimbursement.”
“Once the remaining virtual assets have been returned under the terms of the settlement, up to $82.1 million will be refunded to consumers,” the bureau said in a press release. The bureau did not say how much of that total would go to Maine customers.
Those who believe they have been affected by Abra’s unlicensed activity are encouraged to contact the bureau at 800-332-8529 or 207-624-8527.