Abra Crypto Trading Platform Acquires Valkyrie’s Private Trusts

The crypto asset trading service Abra recently revealed its acquisition of several specialized cryptocurrency trusts from Valkyrie Investments. A report on Bloomberg describes the timing of the transaction as a strategic move for Abra, which is currently in the midst of settling with 25 U.S. state financial regulators over unlicensed operations.

Abra’s Acquisition of Valkyrie’s Trust Holdings

Marissa Kim, the chief of asset management at Abra, confirmed the acquisition of a range of active trusts from Valkyrie as of May through an electronic mail response to Bloomberg News on Friday. The acquisition includes a mix of trusts that have yet to be unveiled and existing ones like those of Tron and Zilliqa.

Addressing Abra’s Compliance Challenges

Abra’s commitment to purchasing the said private trusts transpires amidst enduring regulatory impediments. Texas regulatory authorities previously accused the exchange of both insolvency and securities fraud within the year 2023. The Texas State Securities Board mandated Abra to halt its operations in June 2023, alleging the firm’s financial jeopardy since that March.

By January 2024, Abra had reached an accord with the Texas State Securities Board. A part of this resolution was Abra’s promise to notify every investor with over $10 in their balance to withdraw their assets, with a contingency to convert any remaining assets into fiat currency and return it to investors residing in Texas. Abra’s founder, Bill Barhydt, assured in response that the platform never restricted U.S. user withdrawals and stressed their intent to discontinue retail services in the U.S.

Valkyrie Divests Its Assets

Noteworthy is Valkyrie’s pre-existing streak of business sell-offs, aligning with the recent trust acquisition by Abra. Commencing in 2024, Valkyrie underwent a gradual divestiture of its business areas, including the ETF (exchange-traded fund) sector sold earlier that year to CoinShares International Ltd. Past filings with the SEC disclose the involvement of Valkyrie’s private trusts with various cryptocurrencies, including Algorand, Avalanche, BitTorrent, Dash, Polkadot, and Bitcoin.