Abra acquires Valyrie crypto trusts

Crypto trading platform Abra disclosed it acquired several private cryptocurrency trusts from Valkyrie Investments in May 2024. According to Bloomberg, Abra Capital Management LP took over Valkyrie’s Tron and Zilliqa trusts, along with other unnamed digital asset trusts. The Zilliqa Trust had sold $21.3 million in assets, while the Tron Trust had sold $50 million.

• Marissa Kim, head of asset management at Abra, confirmed the acquisition, noting it would expand Abra’s range of spot and DeFi services for new clients.
• Abra may consider making some of these trusts publicly traded, depending on market demand.
• Abra settled with financial regulators from 25 US states for operating without the proper licenses, agreeing to return $82.1 million worth of cryptocurrencies to US customers.

As part of the settlement, Abra must stop accepting cryptocurrency from US customers for its Abra Trade accounts and halt all buying and trading activities. Regulators in Washington, Texas, Georgia, and Ohio decided not to impose monetary penalties to ensure full reimbursement to customers. In 2023, Texas state regulators accused Abra of insolvency and securities fraud. Abra settled with Texas regulators in January 2024, agreeing to wind down operations and return funds to investors. Abra founder Bill Barhydt stated that the platform never restricted US withdrawals and is committed to winding down retail operations within the US. Leah Wald, a Valkyrie co-founder and former chief executive, resigned from the company last month. Valkyrie did not immediately respond to requests for comment on the sale of its crypto trusts to Abra.