2025-01-15 sec-litreleases litigation_release 64 KB 1,755 chars

SEC v. Plutus Lending, LLC d/b/a Abra, No. LR-26221, District of Columbia (Jan. 15, 2025) — Press Release

raw: Plutus Lending, LLC d/b/a Abra

Plutus Lending, LLC d/b/a Abra, No. 1:24-cv-02457 (D.D.C. Jan. 15, 2025)

Caption
SECURITIES AND EXCHANGE COMMISSION v. PLUTUS LENDING LLC
Source PDF JSON
summary

Plutus Lending, LLC (d/b/a Abra) was ordered to pay a $1,650,000 penalty to resolve SEC charges that its Abra Earn crypto lending product was an unregistered securities offering.

paragraph

Plutus Lending, LLC, doing business as Abra, faced SEC charges for violating the Securities Act of 1933 and the Investment Company Act of 1940. The company failed to register the offers and sales of its retail crypto asset lending product, Abra Earn. To resolve the litigation, the U.S. District Court ordered Abra to pay a $1,650,000 civil penalty and imposed a permanent injunction.

narrative

The U.S. Securities and Exchange Commission obtained final judgment against Plutus Lending, LLC, d/b/a Abra, for failing to register its Abra Earn crypto asset lending product. The SEC charged the company with violating Sections 5(a) and 5(c) of the Securities Act of 1933 and Section 7(b) of the Investment Company Act of 1940. To settle the matter, Abra consented to a permanent injunction without admitting or denying the allegations. On January 13, 2025, the U.S. District Court for the District of Columbia ordered Abra to pay a $1,650,000 civil penalty. This judgment follows a complaint filed in August 2024 regarding the unregistered securities offering. The litigation was led by SEC attorney Zachary A. Avallone and a team of investigators. The final judgment permanently restrains Abra from further violations of the relevant securities laws.

Enriched metadata

Scheme
unregistered-securities (98%)
Court
District of Columbia
Case No.
1:24-cv-02457
Outcome
settled · 2024-08-26
Civil penalty
$1,650,000
Entity
Plutus Lending, LLC d/b/a Abra
Classified unregistered-securities(confidence 98%). EDGAR detection: forms Form D/S-1· recall 41% / precision 30%. detection rule →
Statutes
Sections 5(a) and 5(c) of the Securities ActSections 5(a) and 5(c) of the Securities ActSection 7(b) of the Investment Company ActSection 5 of the Securities Act
Parties
Securities and Exchange CommissionPlutus Lending LLC d/b/a Abra
Keywords
abraplutus lendingcivil penaltysecurities exchangeexchange commissionlendingsecuritiessecplutusllccommissionjanuarycivilpenaltyfinal against

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 2
  • $1.65M $1,650,000 $1M–$10M
  • $1.65M $1,650,000 $1M–$10M
Entities 5
  • person civil penalty
  • person permanent injunction
  • company plutus lending, llc
  • agency Securities and Exchange Commission
  • court u.s. district court for the district of columbia
Triples 16
  • U.S. District Court For The District Of Columbia entered final judgment against Plutus Lending, LLC
  • Plutus Lending, LLC ordered to pay $1,650,000
  • U.S. District Court For The District Of Columbia imposed permanent injunction
  • Securities And Exchange Commission filed complaint on August 26, 2024
  • Securities And Exchange Commission charged Abra with violating Sections 5(a) and 5(c) of the Securities Act of 1933 and Section 7(b) of the Investment Company Act of 1940
  • Abra consented to injunction
  • Abra agreed to pay civil penalty
  • Court issued proposed partial judgment on August 30, 2024
  • Court restrained and enjoined Abra from violating Section 5 of the Securities Act and Section 7(b) of the Investment Company Act
  • Parties notified court on January 10, 2025
  • Court issued final judgment on January 13, 2025
  • Court ordered Abra to pay a civil penalty of $1,650,000
  • Securities And Exchange Commission led by Zachary a. Avallone
  • Securities And Exchange Commission supervised by James Connor and Christopher Bruckmann
  • Securities And Exchange Commission investigation conducted by Brittany Frassetto and Kevin Hayne
  • Securities And Exchange Commission investigation supervised by Pei Chung and Stacy Bogert
PDF (from attached: judgment)
Complaint, and Defendant Plutus Lending, LLC d/b/a Abra has · Source
Text layers
Extracted body text (1,755c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 1:24-cv-02457 / January 15, 2025 Securities and Exchange Commission v. Plutus Lending, LLC d/b/a Abra, No. 1:24-cv-02457 (D.D.C. filed Aug. 26, 2024) SEC Obtains Final Judgment Against Abra On January 13, 2025, the U.S. District Court for the District of Columbia entered final judgment against Plutus Lending, LLC, which does business as Abra, ordering it to pay a civil penalty of $1,650,000 and imposing a permanent injunction to resolve the SEC’s charges that Abra failed to register the offers and sales of its retail crypto asset lending product, Abra Earn. The Securities and Exchange Commission filed its complaint on August 26, 2024, charging Abra with violating Sections 5(a) and 5(c) of the Securities Act of 1933 and Section 7(b) of the Investment Company Act of 1940. To settle the Commission’s charges, Abra, without admitting or denying the SEC’s allegations, consented to an injunction and agreed to pay a civil penalty in an amount to be determined by the court after briefing. On August 30, 2024, the Court issued the proposed partial judgment, which permanently restrained and enjoined Abra from violating Section 5 of the Securities Act and Section 7(b) of the Investment Company Act. On January 10, 2025, the parties notified the court that they had reached an agreement on the amount of a civil penalty, and on January 13, 2025, the Court issued final judgment consistent with that agreement, ordering Abra to pay a civil penalty of $1,650,000. The SEC’s litigation was led by Zachary A. Avallone and supervised by James Connor and Christopher Bruckmann. The SEC’s investigation was conducted Brittany Frassetto and Kevin Hayne, supervised by Pei Chung and Stacy Bogert.
OCR text (1,755c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 1:24-cv-02457 / January 15, 2025 Securities and Exchange Commission v. Plutus Lending, LLC d/b/a Abra, No. 1:24-cv-02457 (D.D.C. filed Aug. 26, 2024) SEC Obtains Final Judgment Against Abra On January 13, 2025, the U.S. District Court for the District of Columbia entered final judgment against Plutus Lending, LLC, which does business as Abra, ordering it to pay a civil penalty of $1,650,000 and imposing a permanent injunction to resolve the SEC’s charges that Abra failed to register the offers and sales of its retail crypto asset lending product, Abra Earn. The Securities and Exchange Commission filed its complaint on August 26, 2024, charging Abra with violating Sections 5(a) and 5(c) of the Securities Act of 1933 and Section 7(b) of the Investment Company Act of 1940. To settle the Commission’s charges, Abra, without admitting or denying the SEC’s allegations, consented to an injunction and agreed to pay a civil penalty in an amount to be determined by the court after briefing. On August 30, 2024, the Court issued the proposed partial judgment, which permanently restrained and enjoined Abra from violating Section 5 of the Securities Act and Section 7(b) of the Investment Company Act. On January 10, 2025, the parties notified the court that they had reached an agreement on the amount of a civil penalty, and on January 13, 2025, the Court issued final judgment consistent with that agreement, ordering Abra to pay a civil penalty of $1,650,000. The SEC’s litigation was led by Zachary A. Avallone and supervised by James Connor and Christopher Bruckmann. The SEC’s investigation was conducted Brittany Frassetto and Kevin Hayne, supervised by Pei Chung and Stacy Bogert.

Related documents (2)