Las Vegas, NV June 27, 2024
The Nevada Financial Institutions Division joined twenty-four
other state financial regulatory agencies in taking collective action against Plutus
Financial, Inc., Abra Trading, LLC, Plutus Financial Holdings, Inc., Plutus
Lending, LLC (collectively known as “Abra”), and
CEO and largest equity owner William “Bill” Barhydt for
operating a cryptocurrency company without receiving the required state
licensing.
A
multistate investigation found that Abra operated a mobile application for
buying, selling, trading, and investing in cryptocurrency without obtaining the
required licenses. Under the settlement, Abra agreed to cease accepting virtual
asset allocations from U.S. Abra Trade Account customers into their products
and services and cease making, buying, selling, or trading cryptocurrencies
available to U.S. Abra Trade customers last summer. The settlement terms
require Abra to refund any remaining virtual assets on its platform for U.S.
Abra Trade customers in the settling states.
“Our
role is to protect consumers by preventing unlicensed activity,” said Sandy
O’Laughlin, Financial Institutions Division Commissioner. “Companies that do
not operate within Nevada’s laws will be held accountable.”
Additionally,
under the settlement, Barhydt agrees he will not participate in any capacity in
the business or affairs of any money transmitter or money services business
licensed or required to be licensed in the settling states other than as a
passive investor for five years.
Nevada
and the other states participating in the settlement agreed to forgo a monetary
penalty of $250,000 per jurisdiction to facilitate customer repayment. Once the
remaining virtual assets are returned pursuant to the settlement terms, up to
$82.1 million will be paid back to consumers. The investigation and settlement
took place in conjunction with a separate investigation by state securities
regulators.
Consumers who have questions about the
settlement or believe they may have been impacted by Abra’s unlicensed activity
should contact fidmaster@fid.state.nv.us.
Consumers can also visit NMLS
Consumer Access to verify that a company is licensed to do business in
Nevada and view past enforcement actions.
About
the Nevada Financial Institutions Division
The
mission of the Financial Institutions Division, an agency of the Department of
Business and Industry, is to maintain a financial institutions system for the
citizens of Nevada that is safe and sound, protects consumers and defends the
overall public interest, and promotes economic development through the
efficient, effective, and equitable licensing, examination and supervision of
depository, fiduciary, and non-depository financial institutions.
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