Enforcement actions by securities regulators in six states against crypto trading platform Abra (officially Plutus Financial Inc. and its subsidiaries) add a coda to my analysis in May that state money transmitter regulators fail to consistently respond to insolvent crypto businesses. When these businesses are being investigated under securities law, the response appears to be more proactive and faster than state money transmitter regulator investigations.
Abra wasn’t licensed as a money transmitter; it outsourced its transaction processing to to Prime Trust (itself recently suspended for insolvency under Nevada trust law and likely to end up in receivership), which has ...
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