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Nevada State Settles With Financial Firm Over Unlicensed Cryptocurrency Operation
LAS VEGAS, Nev. (KOLO) – The State of Nevada has reached an agreement with financial company Abra on cryptocurrency licensing.
The Division of Financial Institutions joined 24 other state financial regulatory agencies in filing a class action against the company and its largest shareholder, Bill Barhydt, who they say operated a cryptocurrency company without a state license request.
A multistate investigation found that the company operated a mobile app to buy, sell, trade, and invest in cryptocurrency without obtaining the proper license.
Under the settlement agreement, Abra will cease accepting virtual asset allocations from U.S. Abra Trade Account customers into its products and services and will cease making, buying, selling, or trading cryptocurrencies available to its customers last summer.
The agreement also calls for Abra to refund any virtual assets remaining on its platform to customers in the settler states.
“Our role is to protect consumers by preventing unauthorized activity,” said Sandy O’Laughlin, commissioner of the Division of Financial Institutions. “Companies that fail to operate in compliance with Nevada laws will be held accountable.”
Barhydt also agreed not to participate in any way in money transmission or monetary services activities or business for five years.
Nevada and the other states in the settlement agreed to waive the $250,000 fine per jurisdiction to allow Abra to reimburse customers. Once the remaining virtual assets are returned, up to $82.1 million will be refunded to customers.
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