SEC v. Abra

The SEC charged Plutus Lending LLC, doing business as Abra, for failing to register the offers and sales of its crypto lending product, Abra Earn, which allowed U.S. investors to tender crypto assets for variable interest payments. Abra Earn, launched around July 2020, had approximately $600 million in assets, with nearly $500 million from U.S. investors. The SEC alleged that Abra Earn was a security and did not qualify for a registration exemption. Additionally, Abra was charged with operating as an unregistered investment company for over two years, holding over 40 percent of its assets in investment securities. Abra began winding down Abra Earn in June 2023. Abra settled the charges, agreeing to an injunction and civil penalties to be determined by the court.