Veröffentlicht von • The Texas State Securities Board (TSSB) issued an Emergency Cease and Desist Order against Abra and its CEO, William John “Bill” Barhydt for alleged securities fraud and deceptive practices.
• Investors participating in Abra Earn and Abra Boost accuse the defendants of withholding important financial information, such as party capitalization, loan defaults, and asset transfers to Binance.
• Despite being close to bankruptcy or already insolvent by March 31st 2023, an official social media platform associated with the holding company proclaimed that “Abra is not bankrupt” on June 11th 2023.
Texas Regulator Accuses Abra Group of Securities Fraud
The Texas State Securities Board (TSSB) has taken legal action against Abra and its CEO, William John “Bill” Barhydt for allegedly engaging in securities fraud and deceptive practices. Investors participating in Abra Earn and Abra Boost have accused the defendants of withholding important financial information from them such as party capitalization, loan defaults, and asset transfers to Binance.
Emergency Cease And Desist Order Issued
The TSSB Enforcement Division has issued an Emergency Cease and Desist Order along with a Notice of Hearing against the respondents for reportedly selling Abra Earn to accredited as well as unaccredited investors while promoting Abra Boost exclusively to accredited investors. These investors had transferred their digital assets into interest-bearing accounts which promised interest rates up to 10%. The enforcement proceedings also claim that despite warnings by the TSSB Enforcement Division regarding these sales activities, they continued until at least October 2022.
Party Capitalization And Loan Defaults Concealed
Investors have complained that important information was deliberately left out from them such as details about party capitalization, operating history as well as defaults on loans secured by their assets when they participated in these investments through ‚Abra Boost‘. Moreover it was revealed that despite both companies being either close to bankruptcy or already insolvent by March 31st 2023 ,an official social media platform associated with the holding company proclaimed that “Abra is not bankrupt” on June 11th 2023.
Warning For Other Companies
This case serves as a warning for other companies who may be engaging in similar activities which are violating state security laws – regardless of whether they are using cryptocurrency or traditional forms of investment .It is essential that all participants within this industry abide by regulatory guidelines set out for consumer protection if we want this sector to continue growing with trustworthiness intact.
Conclusion
In conclusion ,The TSSB’s decisive action against this particular case serves as a reminder for other companies dealing in digital assets that fraudulent activities will not be tolerated . It also sends out a message about how seriously investor protection measures should be taken into consideration when investing funds no matter what form it may take .