• The Texas State Securities Board (TSSB) has issued an Emergency Cease and Desist Order against Abra and its CEO, William John “Bill” Barhydt, for securities fraud and deceptive practices.
• Investors participating in Abra Earn and Abra Boost claim they were not informed of important financial information such as party capitalization, loan defaults, and asset transfers to Binance.
• Despite the companies’ insolvency or near-insolvency, 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. Investors participating in Abra Earn and Abra Boost accuse the defendants of securities fraud and deceptive practices. An Emergency Cease and Desist Order has been issued by the TSSB Enforcement Division, along with a Notice of Hearing.
Accusations Against Abra Group
The TSSB claims important financial information was deliberately concealed from investors such as party capitalization, loan defaults, and asset transfers to Binance. Complaints reveal that the TSSB Enforcement Division warned the defendants but sales of Abra Earn continued until at least October 2022 when their focus shifted to promoting Abra Boost instead. The respondents are accused of selling Abra Earn to both accredited and unaccredited investors while only selling Abra Boost exclusively to accredited investors.
Abara’s Interest Bearing Accounts
Investors who participated allegedly transferred their digital assets to interest-bearing accounts with possible interest rates of up to 10%. In addition, they are also accused of withholding important information from their shareholders including party capitalization, operating history, and defaults on loans secured by investors’ assets despite being either on brink of bankruptcy or already insolvent as of March 31st 2023.
Official Social Media Platform Contradiction
Despite the businesses’ insolvency or near-insolvency as of March 31st 2023, an official social media platform associated with the holding company proclaimed that “Abra is not bankrupt” on June 11th 2023 which furthers contradicts previous claims made by the TSSB Enforcement Division’s investigations into their alleged misdeeds.
In conclusion, it seems clear that there was something amiss in terms of financial transparency within this organization which led to their current legal issues involving securities fraud accusations from investors who had participated in either one or both programs offered by them – namely: Abara Earn & Boost – both which have now been suspended pending further investigations into these matters by both state & federal authorities alike moving forward.