Abra has been insolvent for months, according to state regulators.

State securities regulators have accused crypto lender Abra of being insolvent since March 31, 2023. The Texas State Securities Board issued an emergency cease-and-desist order alleging that Abra, also known as Plutus Financial, Abra Boost, Plutus Lending, and Abra founder William Barhydt, committed securities fraud and misled the public. The regulator claimed that Abra offered investments in Abra Earn and Abra Boost that contained misleading statements. Abra has been secretly transferring assets to Binance Holdings Limited, according to the filing, which noted that the US Securities and Exchange Commission sued Binance this month. Abra founder Barhydt has not yet commented on the allegations. Regulators are hoping to hold a hearing on the matter. In the meantime, Abra and its entities are still allowed to let customers withdraw funds, the filing said. Abra has nearly $30 million on Babel Finance, $8.8 million on Auros Tech Limited, $30 million on Genesis, and $10 million on Three Arrows Capital, according to the regulator. All of these companies are in various liquidation or bankruptcy processes.

Abra has been a crypto lender for almost a decade. Last year, the company announced it would offer crypto rewards through a card offered with American Express and that it would try to launch a state-chartered bank sometime in 2023.

The filing said that regulators interviewed Barhydt on March 31, 2023, and shared information suggesting Abra was insolvent, which Barhydt did not contest.

UPDATE (June 15, 19:54 UTC): Added lack of an immediate comment from Barhydt.