Plutus Lending LLC, formerly known as Abra, has settled a legal dispute with the US Securities and Exchange Commission (SEC). The SEC had alleged that the company was operating unregistered with cryptocurrencies collected from investors through its Abra Earn product. According to the SEC's allegations, the Abra Earn product raised $600 million in cryptocurrency, $500 million of which came from US investors.
In this settlement with the SEC, Plutus Lending agreed to settle the charges without admitting or denying the allegations and agreed to a preliminary injunction for alleged violations of the Securities Act and the Investment Company Act. In addition, the company stated that it had not caused any harm to customers and agreed to pay a fine of a specified amount as a result of the settlement. In 2023, Abra Earn clients' assets were transferred to another type of account.
