Nevada Reaches Settlement with Financial Firm for Operating Cryptocurrency Business Without License

LAS VEGAS, Nev. (KOLO) – Nevada has reached a settlement with Abra, a financial service provider, regarding cryptocurrency licensing regulations.

The Nevada Financial Institutions Division was part of a joint effort with 24 other state regulators to address allegations that Abra and its principal investor, Bill Barhydt, were running an unlicensed cryptocurrency enterprise.

An extensive inquiry by the states revealed that Abra had been facilitating cryptocurrency transactions through a mobile application without the necessary licenses.

Under the agreement terms, Abra is to halt the acceptance of virtual currency transfers from U.S. based Abra Trade Account users to its services, and abandon all activities involving the making, purchasing, selling, or trading of cryptocurrencies as of last summer.

Additionally, the settlement mandates Abra to return all virtual currencies still present on its platform to users from the states involved in the action.

Financial Institutions Division Commissioner Sandy O’Laughlin emphasized their commitment to consumer protection by maintaining strict enforcement of licensing laws. She stated that businesses not in compliance will face appropriate consequences.

Bill Barhydt has concurred to abstain from undertaking any involvement in the operations or management of any business related to money transmission or monetary services for a five-year period.

In order to facilitate the repayment process to customers, the involved states have decided to waive the imposition of a monetary fine which could have totalled $250,000 for each state. This will enable Abra to concentrate on reimbursing customers, with the prospective sum returning to customers amounting to as much as $82.1 million.

Copyright 2024 KOLO. All rights reserved.