New Jersey state officials are sounding the alarm for residents with funds still tied up in the Abra trading and lending platform. As the California-based crypto company prepares to wind down its U.S. operations, New Jersey’s Attorney General Matthew J. Platkin and the Bureau of Securities are asking investors to withdraw their funds.
New Jersey officials urge investors to withdraw funds
The urgency stems from a multistate investigation into Abra’s sale of interest-bearing crypto accounts, which raised $116 million nationwide, with New Jersey investors contributing over $2.97 million.
According to the press release, these accounts were marketed under the names “Abra Boost” and “Abra Earn.” They also allowed investors to earn interest by depositing crypto with Abra, which then lent these assets to institutional borrowers.
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However, state regulators allege that these products were sold in violation of state securities laws. As part of a settlement in principle, Abra and its CEO, William John “Bill” Barhydt, have agreed to refund all virtual assets remaining on the platform to investors.
For New Jersey residents, the process is easy but time-sensitive. Accounts with balances of $10 or more will receive refund checks, while smaller amounts can be withdrawn through the Abra app.
Any unclaimed funds will eventually be transferred to the New Jersey Department of the Treasury’s Unclaimed Property Administration. Attorney General Platkin emphasized that firms dealing in new technologies are not exempt from securities laws.
As Abra ceases its U.S. retail operations, approximately $200,000 in cryptocurrencies belonging to New Jersey investors remain on the platform. The Bureau of Securities is urging these investors to act quickly to reclaim their assets.
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Also Read: New Jersey Mayor: City Pension Fund to Invest in Bitcoin ETF
