According to a press release, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have fined Abra and its partner a total of $300,000.
Abra, a crypto trading app, and its partner, Plutus Technologies, were charged by the SEC and CFTC with the illegal swapping of securities. Both companies were fined $150,000 each, making it a total of $300,000.
Securities regulations require that any organization must register with the SEC and CFTC before trading securities domestically or internationally in the US. Abra and its partner violated the regulation when it sold security-based swaps to retail investors.
Abra first came into the SEC’s attention about a year ago, when it offered US-based stocks to US investors through “synthetic exposure”. However, Abra never actually offered the stocks. Instead, Abra’s clients received access to investments that mirrored actual stock movements. The clients never really purchased the stocks.
When the operation got exposed, Abra moved to the Philippines and denied US-based investors its services. Although the company is thousands of miles from the US, the SEC and CFTC are determined to bring the company to justice.
According to the release, Abra and Plutus have accepted to pay the fine without the admission of guilt or denying the SEC’s findings.
Meanwhile, Abra CEO Bill Barhydt says “Abra’s business is doing very well.”
Image Credits: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
