The Nevada Financial Institutions Division has joined 24 other state financial regulatory agencies in taking collective action against Plutus Financial, Inc., Abra Trading, LLC, Plutus Financial Holdings, Inc., and Plutus Lending, LLC (collectively known as "Abra"), along with CEO and largest equity owner William "Bill" Barhydt. The actions stem from allegations that the company operated a cryptocurrency business without the necessary state licensing.
A multistate investigation found that Abra ran a mobile application for buying, selling, trading, and investing in cryptocurrency without obtaining the required licenses. Under the settlement terms, Abra agreed to stop accepting virtual asset allocations from U.S. Abra Trade Account customers into their products and services. Additionally, they ceased making cryptocurrencies available to U.S. Abra Trade customers last summer. The settlement mandates that Abra 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 Sandy O’Laughlin, Financial Institutions Division Commissioner. "Companies that do not operate within Nevada’s laws will be held accountable."
Furthermore, under the settlement agreement, Barhydt agrees not to 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.
Nevada and other participating states have agreed to forgo a monetary penalty of $250,000 per jurisdiction to facilitate customer repayment. Once the remaining virtual assets are returned according to the settlement terms, up to $82.1 million will be refunded to consumers. This investigation and settlement were conducted alongside a separate investigation by state securities regulators.
Consumers with questions about the settlement or who believe they may have been impacted by Abra's unlicensed activity are encouraged to contact fidmaster@fid.state.nv.us. Consumers can also visit NMLS Consumer Access to verify if a company is licensed to conduct business in Nevada and view past enforcement actions.
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