SEC settles with Abra for $1.65m over unregistered crypto lending product



The SEC settles with crypto lender Plutus Lending LLC, operating as Abra

The Securities and Exchange Commission has reached a settlement with crypto lender Plutus Lending LLC, which operates under the name Abra. The settlement resolves allegations that Abra violated federal securities laws by failing to register its retail crypto lending product, Abra Earn, and by operating as an unregistered investment company.

As part of the agreement, Abra has consented to pay a $1.65 million civil penalty and comply with a permanent injunction imposed by the SEC. 

Although Abra settled the case without admitting or denying the allegations, the SEC emphasized that the enforcement action underscores its commitment to protecting investors in the volatile cryptocurrency market.

Abra Earn

The SEC’s charges stem from Abra’s offering of Abra Earn, a program that allowed U.S. investors to lend cryptocurrency in exchange for interest payments. According to the SEC, Abra marketed the program as a secure investment and, at its peak, managed over $600 million in assets—nearly $500 million of which came from U.S. investors.

Additionally, the company held more than 40% of its assets in investment securities, in violation of the Investment Company Act.

The SEC’s settlement with Abra comes amid heightened scrutiny of crypto lending platforms.

In August 2024, the New Jersey Attorney General required Abra to return remaining cryptocurrency assets to investors and issue refunds as part of a multistate investigation.

This case mirrors other SEC actions, including its February 2024 settlement with Genesis Global Capital over its Gemini Earn program. The SEC continues to target firms that fail to comply with registration and disclosure requirements, emphasizing the risks posed by unregistered securities in the crypto sector.

  • Umair

    Muhammad Umair is a passionate content creator, web developer, and tech enthusiast. With years of experience in developing dynamic websites and curating engaging content, he specializes in delivering accurate, informative, and up-to-date articles across diverse topics. From gaming and technology to crypto and world news, Umair's expertise ensures a seamless blend of technical knowledge and captivating storytelling. When he's not writing or coding, he enjoys gaming and exploring the latest trends in the tech world.

    Related Posts

    Catzilla presale halfway through, early buyers secure steep discounts

    Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only. Catzilla, a Solana-based meme coin featuring a mutant cat,…

    Hedge fund managers are shifting from XRP to this altcoin

    Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only. Hedge fund managers shift focus from XRP to altcoins…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Catzilla presale halfway through, early buyers secure steep discounts

    • By Umair
    • February 8, 2025
    • 1 views
    Catzilla presale halfway through, early buyers secure steep discounts

    Hedge fund managers are shifting from XRP to this altcoin

    • By Umair
    • February 8, 2025
    • 1 views
    Hedge fund managers are shifting from XRP to this altcoin

    Prince Harry, Meghan Markle release joint statement before leaving US

    • By Umair
    • February 8, 2025
    • 3 views
    Prince Harry, Meghan Markle release joint statement before leaving US

    Queen Camilla sacrifices her big plans for King Charles

    • By Umair
    • February 8, 2025
    • 2 views
    Queen Camilla sacrifices her big plans for King Charles

    Why Ariana Grande, Ethan Slater get awkward at 2025 Critics Choice Awards?

    • By Umair
    • February 8, 2025
    • 2 views
    Why Ariana Grande, Ethan Slater get awkward at 2025 Critics Choice Awards?

    Did Kanye West just expose how celebrity X hacks are used to pump fake Solana meme coins?

    • By Umair
    • February 8, 2025
    • 2 views
    Did Kanye West just expose how celebrity X hacks are used to pump fake Solana meme coins?