The US Securities and Exchange Commission (SEC) has reached a settlement with Plutus Lending LLC, which operates under the name Abra.
According to the agency's official statement, the settlement relates to the company's sale of unregistered securities for its crypto lending product.
The SEC also alleged that Abra operated as an unregistered investment company. The agency's complaint focused on Abra's yield-earning service, Abra Earn, which allowed US users to earn interest on their cryptocurrencies.
The SEC alleged Abra used customers' digital assets to generate revenue for itself and fund interest payments, and also offered and sold securities without proper registration.
As part of the settlement, Abra has agreed to an injunction preventing it from violating the registration provisions of the Securities Act and the Investment Company Act. The company has also agreed to pay civil penalties.