News
New Mexico Division of Financial Institutions Reaches Settlement With Abra to Return Cryptocurrency Assets
NMRLD News:
SANTA FE — The New Mexico Department of Regulation and Licensing’s Financial Institutions Division has joined 24 other state financial regulatory agencies in filing a class action lawsuit against Plutus Financial, Inc., Abra Trading, LLC, Plutus Financial Holdings, Inc., Plutus Lending, LLC (collectively “Abra”) and CEO and largest shareholder William “Bill” Barhydt for operating a cryptocurrency company without receiving the required state license.
A multistate investigation found that Abra operated a mobile application to buy, sell, trade and invest in cryptocurrency without obtaining the required licenses. Under the settlement, Abra agreed to stop accepting virtual asset allocations from US Abra Trade Account customers in its products and services and to stop making, buying, selling or trading cryptocurrency available to US Abra Trade customers effective June 15, 2023.
The terms of the settlement require Abra to refund all remaining virtual goods on its platform to U.S. Abra Trade customers in the affected states.
“Our role is to protect consumers by preventing unauthorized activity,” said Mark Sadowski, director of the Financial Institutions Division. “Companies that do not operate in accordance with New Mexico laws will be held accountable.”
Additionally, under the agreement, Barhydt agrees not to participate in any way in the activities or affairs of any money transfer or money services company licensed or required to be licensed in any of the signatory states, other than as a passive investor for five years.
New Mexico and the other states that participated in the settlement agreed to waive a $250,000 fine per jurisdiction to facilitate customer reimbursement. Once the remaining virtual assets are returned under the terms of the settlement, up to $82.1 million will be returned to consumers. The investigation and settlement occurred in conjunction with a separate investigation by New Mexico Securities Division.
Consumers who have questions about the agreement or believe they have been affected by Abra’s unauthorized activity should contact the Financial Institutions Division at 505.476.4885 or online at www.rld.nm.gov/financial-institutions/.
Consumers can also visit NMLS Consumer Access to verify that a business is licensed to operate in New Mexico and view previous enforcement actions.