SEC Accuses Abra Group of Securities Fraud, Issues Emergency Cease & Desist
• Texas State Securities Board (TSSB) has taken legal action against Abra and its CEO, William John “Bill” Barhydt for securities fraud and deceptive practices.
• TSSB claims important financial information was deliberately concealed, such as party capitalization, loan defaults, and asset transfers to Binance.
• An Emergency Cease and Desist Order has been issued by the TSSB Enforcement Division, along with a Notice of Hearing.
Texas Regulator Accuses Abra Group of Securities Fraud
The Texas State Securities Board (TSSB) has taken legal action against Abra and its CEO, William John “Bill” Barhydt for securities fraud and other deceptive practices. The TSSB has accused them of withholding important financial information from investors participating in Abra Earn and Abra Boost such as party capitalization, loan defaults, and asset transfers to Binance.
Emergency Cease & Desist Order Issued
In response to the allegations, an Emergency Cease & Desist Order has been issued by the TSSB Enforcement Division along with a Notice of Hearing. This order applies to both Abra Earn which was sold to both accredited and unaccredited investors as well as Abra Boost which was exclusively sold to accredited investors.
How Investors Were Affected
Investors who participated in these schemes allegedly transferred their digital assets into interest-bearing accounts with interest rates of up to 10%. Despite warnings from the TSSB Enforcement Division sales of Abra Earn continued until October 2022 when they shifted focus towards promoting Abra Boost using Regulation D Rule 506 in order to bypass investor protection measures.
Insolvency Of Companies
By March 31st 2023 these companies were either on the brink of bankruptcy or already insolvent yet an official social media platform associated with the holding company proclaimed that “Abra is not bankrupt” on June 11th 2023.
Conclusion
The Texas State Securities Board is seeking justice for those affected by this alleged securities fraud committed by the defendants. An Emergency Cease & Desist Order has been issued alongside a Notice of Hearing in order to ensure that this case is properly investigated and resolved accordingly.
