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SEC And CFTC Order Crypto App Abra To Pay Settlement After Offering Illegal Swaps
Summary: The SEC and the CFTC have ordered crypto app Abra to pay $300K as a part of a settlement deal after the app was hit with charges of offering illegal swaps, according to documents released Monday, July 13. Abra and its partner company Plutus were allegedly selling security-based swaps to retail investors without being registered ...
The SEC and the CFTC have ordered crypto app Abra to pay $300K as a part of a settlement deal after the app was hit with charges of offering illegal swaps, according to documents released Monday, July 13.
Abra and its partner company Plutus were allegedly selling security-based swaps to retail investors without being registered on a recognized exchange. Abra allows users to bet on prices of U.S. securities which the SEC used to conclude that the swaps were subject to U.S. securities law.
The companies did not vet their customers to see if they were eligible contract participants, as required by U.S. law. Abra had stopped offering contracts in February 2019 after warnings from the SEC, but started up again in May 2019.
By Emily Mason
Tags: CFTC,SEC,Settlement Deal
Link: SEC And CFTC Order Crypto App Abra To Pay Settlement After Offering Illegal Swaps [Copy]
