The Texas Securities Board has ordered crypto firm Plutus Financial (Abra) to immediately cease trading on the grounds that it has kept it secret that it has gone bankrupt.
Emergency stop order issued from Texas to crypto company Abra
Crypto firm Plutus Financial, known as Abra, has been keeping it a secret since March 31, 2023, according to the US state regulator. The regulator has issued an emergency stop to the crypto lender today.
The regulator also accuses Abra founder William Barhydt of securities fraud. According to the Texas regulator, Abra “has made investment offers to Abra Earn in Texas that contain statements that are materially misleading or otherwise likely to deceive people.”
Abra was founded by William Barhydt in 2014. The company offers cryptocurrency trading, lending and borrowing services to individual and institutional investors. The company’s alleged securities fraud products: Abra Earn and Abra Boost.
Background
As of May 17, the platform collectively managed approximately $116.79 million in assets for Abra Earn and Abra Boost investors in the US. It had previously announced that it would “stop the sale of investments in Abra Earn in October 2022.” However, the regulator pointed out that the company did not implement this plan. Additionally, Abra and its affiliates “started offering and selling investments in Abra Boost, a cryptocurrency custodian account, to accredited and institutional investors in the US.”
The regulator concluded that Abra went bankrupt in March, based on an interview with Barhydt and other shared information. Barhydt also did not dispute this regulatory conclusion.
Crypto firm was quietly transferring funds to Binance
Plutus Financial’s relationship with Binance also drew attention. According to the report, the company was silently transferring funds to Binance.com. According to the Texas regulator, “Abra is secretly transferring assets to Binance.com. As of February 2023, he had assets worth $118,581,732 on Binance.com.”
Abra was also closely associated with several bankrupt crypto companies. Just under $30 million in assets is squeezed in Babel Finance. It also lost $30 million in Genesis and $10 million in Three Arrows Capital. All of these companies are in the process of bankruptcy or liquidation.
cryptocoin.comAs we have mentioned, founder William Barhydt was a name that came to the fore with price predictions.
Bankrupt Celsuis announces plans to sell altcoins
Celsuis, another crypto company that went bankrupt in 2022, announced yesterday that it will convert its altcoins into BTC and ETH. Cryptocurrencies that the company is prepared to sell and their quantities:
- Cardano (ADA): 103,065 units
- Celsius (CEL): 660.348 units
- Chainlink (LINK): 3,337,000 units
- Polygon (MATIC): 91,630 pieces
- Litecoin (LTC): 197,000 units
- Bitcoin Cash (BCH): 53,000 units
- Binance Coin (BNB): 19,000 units
- Solana (LEFT): 145,000 units
- Uniswap (UNI): 864,000 units
- Aave (AAVE): 106,000 units
- Stellar (XLM): 47,851,000 units
- EOS: 3,119,000 units
- Polkadot (DOT): 1,832,000 units
