Regulators say crypto lender Abra is insolvent and lied about FTX exposure
The Texas State Securities Board has filed for an emergency cease and desist order against cryptocurrency lender Abra, alleging that it has been insolvent since at least March 31, that it has sold unregistered securities, and that it has misrepresented the extent of it and its partner organization’s licensure. Specifically, Texas regulators allege that the ‘Earn’ product, which involves Abra lending out c US tomer Crypto currency to earn yield, is a security. Abra has supposedly directed ‘investors’ in Texas to open accounts at Prime Trust and represented Prime Trust as a regulated company, despite Prime Trust lacking a money transmission license in Texas. Furthermore, Abra has allegedly misrepresented its exposure to FTX. It previously claimed that it had no exposure to FTX or Alameda Research but apparently had more than $12 million still on FTX . Abra also apparently has an extensive portfolio of bad loans including: Approximately $30 million to ...