Maine Bureau of Consumer Credit Protection Settles with Abra to Return Cryptocurrency Assets

MAINE, August 15 - Back to current news.

June 26, 2024
Professional & Financial Regulation - Consumer Credit Regulation

The Maine Bureau of Consumer Credit Protection along with twenty-four other state financial regulatory agencies took action against Plutus Financial, Inc., Abra Trading, LLC, Plutus Financial Holdings, Inc., Plutus Lending, LLC (collectively known as "Abra"), and CEO and largest equity owner William Bill Barhydt for operating a cryptocurrency company without receiving the required state licensing. The settlement will result in a repayment to Maine customers of approximately $7,195.43 for 42 unlicensed transactions.

A multistate investigation found that Abra operated a mobile application for buying, selling, trading, and investing in cryptocurrency without obtaining the required licenses. Under the settlement, Abra agreed to cease accepting virtual asset allocations from U.S. Abra Trade Account customers into their products and services and cease making, buying, selling, or trading cryptocurrencies available to U.S. Abra Trade customers as of June 15, 2023. The settlement terms require Abra to refund any remaining virtual assets on its platform for U.S. Abra Trade customers in the settling states.

Our role is to protect consumers by preventing unlicensed activity, said Linda Conti, Superintendent of Consumer Credit Protection. Companies that do not operate within Maine's laws will be held accountable.

Additionally, under the settlement, Barhydt agrees he will not participate in any capacity in the business or affairs of any money transmitter or money services business licensed or required to be licensed in the settling states other than as a passive investor for five years.

Maine and the other states participating in the settlement agreed to forgo a monetary penalty of $250,000 per jurisdiction to facilitate customer repayment. Once the remaining virtual assets are returned pursuant to the settlement terms, up to $82.1 million will be paid back to consumers. The investigation and settlement took place in conjunction with a separate investigation by state securities regulators.

Consumers who have questions about the settlement or believe they may have been impacted by Abras unlicensed activity should contact the Bureau at 800-332-8529 or 207-624-8527 Hearing Impaired: Maine Relay 711. Consumers can also visit NMLS Consumer Access (Trusted Partner Link)> to verify that a company is licensed to do business in Maine and view past enforcement actions.

Contact: Linda Conti