Abra will pay $ 300,000 in SEC and CFTC fines

The SEC and CFTC accused the Abra platform of facilitating unregistered exchange swaps on its app forcrypto wallet.

Abra is a wallet that allows users to store and exchange various cryptocurrencies.Unlike most wallets, Abra also allowed users to invest their crypto assets in stocks and ETFs.The SEC explains that users of the wallet could "bet on the price movements of U.S.-listed stocks" or enter into contracts that reflected the performance of those securities.

According to the SEC, Abra violated the securities law by offering users securities-based swaps without registration. The CFTC filed concurrent charges against the company.

For the first time, Abra began offering investmentsecurities contracts in 2017. However, it soon transferred this feature to users outside the United States through Plutus Technologies, an Abra affiliate in the Philippines.

Despite the decision to transfer this feature to offshore, the SEC notes that Abra continued to administer the sale of swaps and verify users who bought the contracts.

Abra and Plutus will now pay a total fine of $ 300000, at $ 150,000 for both the SEC and CFTC, and will stop using the securities exchange function in the Abra app. It seems that the application will continue to act as a standard crypto wallet.

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