The U.S. Securities and Exchange Commission (SEC) has accused Plutus Lending LLC, operating under the Abra brand, of selling unregistered securities and operating as an unregistered investment company.
SEC Files Complaint
According to an announcement on the SEC’s official site, today a complaint was filed against Plutus Lending LLC, operating as Abra, for failing to comply with registration requirements when selling crypto asset products Abra Earn. The SEC also accused Abra of operating as an unregistered investment company.
Abra Earn Program
According to the SEC’s complaint, in July 2020, Abra launched the Abra Earn program in the United States. The program allowed U.S. investors to deposit their crypto assets with Abra in exchange for a promised variable interest rate. At its peak, the Abra Earn program held approximately $600 million in assets, with around $500 million provided by U.S. investors. The SEC’s complaint also stated that Abra operated as an unregistered investment company for at least two years, issuing securities and maintaining over 40% of its total non-cash assets in investment securities, including crypto asset loans to institutional borrowers.
Bitcoin Price Update
While these events unfolded at the SEC, Bitcoin’s price continued to decline. After reaching $65,000 overnight, the price decline deepened, and it currently stands at $63,242, a 1.47% drop in the last 24 hours. Although the current trading level is about $14,500 above the price on August 5th, when it dropped to $48,800, it is still over $10,000 below its all-time high.
The SEC's complaint against Abra underscores its commitment to strict adherence to securities registration laws and investor protection. These developments continue to impact the cryptocurrency market.
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