According to Texas officials, crypto lending startup Abra, which formerly managed more than $116 million in assets, committed securities fraud and has been bankrupt since March 31.
The Texas State Securities Board accused Abra and its founder, William Barhydt, of securities fraud and deception in the sale of investment products through its affiliates Abra Earn and Abra Boost in a June 15 enforcement action, which included an emergency cease and desist order.
“The alleged misconduct includes the intentional concealment of financial information reflecting the capitalization of parties, defaults on loans, and the transfer of assets to Binance,” the regulator stated.