This isn't the first sign of shakiness at Abra, which was alleged to be insolvent by the Texas state securities regulator in 2023. The company wound down its US operations in mid-2023 and refunded $82 million to US customers, after reaching a settlement with 25 state regulators. Abra also faced a lawsuit from the US federal securities regulator in 2024, which they settled in August of that year.
Crypto lender Abra pauses withdrawals for international customers
The Abra cryptocurrency lender sent an email to customers announcing that "Abra Earn international services are currently paused, effective immediately", attributing the decision to "broader risk management efforts" and saying it was "influenced by external circumstances outside of our control". This has raised concern among Abra customers, and carries troubling echoes of the wave of crypto lenders pausing withdrawals before they collapsed during the 2022 "crypto winter".