SEC and CFTC allege that Abra, a cryptocurrency wallet, sells securities swap products to retail investors, and is required to pay a fine of US$300,000

The US Securities and Exchange Commission (SEC) has accused California-based cryptocurrency wallet Abra and an affiliated company in the Philippines, Plutus, of selling securities-based swap products to retail customers without registration. The allegation stated that Abra began offering these contracts to investors in the United States and abroad starting in February 2019, and that Abra’s employees in the United States conducted thousands of stock and ETF transactions to hedge contracts. The SEC believes that Abra and Plutus violated the relevant provisions of the federal securities law regarding securities-based swap transactions. Abra and Plutus did not acknowledge or deny the findings of the investigation, but agreed to pay a fine of $150,000. The United States Commodity Futures Trading Commission (CFTC) also issued a joint statement requiring Abra and Plutus to pay a fine of $150,000.