• Texas State Securities Board (TSSB) has taken legal action against Abra and its CEO, William John “Bill” Barhydt for 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.
• An Emergency Cease and Desist Order has been issued by the TSSB Enforcement Division along with a Notice of Hearing.
Texas Regulator Accuses Abra Group of Securities Fraud
The Texas State Securities Board (TSSB) has taken legal action against Abra Group and its CEO William John “Bill” Barhydt for alleged securities fraud and deceptive practices. Investors who participated in both Abra Earn and Abra Boost claim that important financial information was intentionally concealed from them, including party capitalization, loan defaults, and asset transfers to Binance. As of March 31st 2023, it is claimed these companies were either insolvent or on the brink of bankruptcy. The TSSB Enforcement Division have issued an Emergency Cease & Desist Order as well as a Notice of Hearing in response to this accusation.
Abra Earn & Boost Sales
Abra Earn was allegedly sold to both accredited & non-accredited investors while Abra Boost was only sold to accredited investors. It is believed that investors transferred their digital assets into interest-bearing accounts with possible interest rates up to 10%. Despite warnings from the TSSB Enforcement Division sales continued until at least October 2022 when they shifted their focus towards promoting Abra Boost under Regulation D Rule 506 which bypasses investor protection measures.
Official Social Media Platform Proclamation
Despite reports of insolvency or near insolvency for the holding company an official social media platform associated with it proclaimed that “Abra is not bankrupt” on June 11th 2023.
It has also been reported that assets were being transferred between parties which included Binance; however no further details have been provided at this time regarding their involvement in this matter.
The Texas State Securities Board are continuing their investigation into the accusations against Abra Group & its CEO William John “Bill” Barhydt for alleged securities fraud & deceptive practices which includes withholding important financial information from investors who participated in both Abra Earn & Aba Boost programs. An Emergency Cease & Desist Order along with a Notice of Hearing have been issued by the TSSB Enforcement Division in response to these allegations