Crypto exchange Abra is reportedly purchasing a number of funds from digital asset management firm Valkyrie Investments after settling with US state regulators.
According to a new report by Bloomberg, Abra has bought several trusts from Valkyrie after settling up with 25 regulators.
[adinserter block="1"]Marissa Kim, Abra’s head of asset management, tells Bloomberg that the deal included Valkyrie’s Tron and Zilliqa trusts, which have collectively sold about $71 million worth of assets to investors.
Also included in the deal are Valkyrie funds that have not yet rolled out.
As stated by Kim to Bloomberg,
“This acquisition will provide [Abra] with a way to expand its current offering of spot and DeFi (decentralized finance) products to a new audience of investors.”
In 2023, the State of Texas accused Abra of misleading investors through the sales of two interest-bearing crypto products, while also alleging that the crypto exchange was insolvent or nearly insolvent, according to the report.
In June, Abra settled with a workgroup of states, including Arkansas, Connecticut, Georgia, Ohio, Oregon, Texas, Vermont and Washington State. The workgroup launched an investigation into the firm and found that it was operating without the proper licenses, according to a press release by the Conference of State Bank Supervisors (CSBS).
According to the CSBS, Abra was fined $250,000 per jurisdiction and will pay customers back up to $82.1 million worth of crypto assets.
As stated by CSBS Chair Charlie Clark,
“State financial regulators take their role to protect consumers and prevent unlicensed activity seriously. Companies that do not operate within the bounds of state laws will be held accountable.”
Earlier this year, digital asset manager Valkyrie Funds was acquired by European digital investment group CoinShares after the U.S. Securities and Exchange Commission (SEC) approved its bid to create a spot market Bitcoin (BTC) exchange-traded fund (ETF).
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