Conflict between SEC and Abra

The U.S. Chief Financial Regulator (SEC), together with the Commodity Futures Trading Commission (CFTC), announced the agreement with representatives of the Abra crypto platform.

What happened?

Recall, employees of the U.S. federal departments accused the Abra platform of illegally spreading swaps on securities, which they held between December 2017 and October 2019. Government officials said Abra did not have the right to do this, as they did not have a license.

SEC press release

“The Securities and Exchange Commission today charged California-based Abra and a related firm in the Philippines for offering and selling security-based swaps to retail investors without registration and for failing to transact those swaps on a registered national exchange”. – said in the press release.  

Penalties

As a result, the Abra bitcoin platform will be required to pay a fine of $300 thousand - $150 thousand to each of these two Federal departments.