Crypto investment platform Abra settled in principle with Texas securities regulators, part of which requires the company to allow its customers to withdraw their assets.

Abra was previously accused of deceiving customers and violating securities laws through the offering of its interest-bearing products.

Abra to Return Crypto Assets to Investors

The Texas State Securities Board (TSSB) announced the settlement with Abra – a company comprising four entities controlled by CEO William Barhydt – in a press release.

According to the settlement terms, Abra is expected to notify clients with balances of over $10 and give them seven days to enable them to withdraw their assets from the platform. Any remaining assets not claimed within the period will be converted to fiat and sent to Texas investors.

As stated in the press release, Abra has been given a 30-day ultimatum to fulfill its obligations. A statement from the agency’s Enforcement Director, Joe Rotunda, reads:

“Our agency recognizes that financial losses can have a devastating impact on retirement planning, college savings, and even the ability to pay routine bills and expenses. When settling this matter, we prioritized returning money to retail investors. Our division stands ready to assist Texans throughout the process.”

No Frozen Withdrawals, Says Abra CEO

Abra CEO William Barhydt announced the settlement on X, stating that the company cooperated with Texas regulators following the latter’s enforcement action against it, while also clarifying that the firm did not freeze withdrawals for US customers.

We’re pleased to announce that Abra has entered into an agreement under which Texas will agree to dismiss their actions against Abra from 2023. Abra worked with regulators over the course of many months to ensure that both parties were comfortable with our obligations to…

— Bill Barhydt (@billbarX) Janua