By Hannah Lang

(Reuters) – Monetary regulators in 25 U.S. states introduced settlements on Wednesday with cryptocurrency funding platform Abra and its chief government officer for working with no state license.

As a part of the settlement, Abra agreed final yr to cease accepting cryptocurrencies from U.S. Abra Commerce account clients for its services and products, the Convention of State Banking Supervisors (CSBS) stated in a press release, and subsequently agreed to cease buying or buying and selling cryptocurrencies.

Abra introduced final yr that it will cut back its U.S. retail enterprise after dealing with a sequence of enforcement actions from state securities regulators.

Underneath the phrases of the settlement introduced Wednesday, Abra CEO Invoice Barhydt shall be barred from taking part within the enterprise or operations of any cash transmitter or cash companies enterprise licensed in 25 states for the following 5 years.

Abra should additionally refund as much as $82.1 million to clients in 25 states. The states concerned within the settlement, together with Washington, Texas, Georgia and Ohio, agreed to waive penalties as a way to refund the entire cash to clients.

“Abra is happy to have executed the time period sheet negotiated with the Cash Switch Regulatory Affiliation Working Group for the Abra app beforehand provided within the U.S.,” an Abra spokesperson stated in a press release.

A spokesman stated Abra continues to do enterprise within the U.S. by way of Abra Capital Administration, an SEC-registered funding adviser.

Barhydt stated the corporate is “happy that negotiations with the state have concluded.”

“State monetary regulators take their function to guard shoppers and forestall unauthorized exercise critically,” CSBS Chairman and Washington State Division of Monetary Establishments Commissioner Charlie Clark stated in a press release. “Corporations that don’t function throughout the bounds of state legislation shall be held accountable.”