Abra, William Barhydt named in Texas State Securities Board cease and desist

Following a March 2023 interview with Barhydt, “parties collectively operating as Barhydt” were “collectively insolvent or nearly insolvent”

article-image

Freedomz/Shutterstock modified by Blockworks

share

The Texas State Securities Board issued an emergency cease and desist against Plutus Financial, Plutus Lending, Abra Boost — doing business as Abra — and CEO William Barhydt.

The cease and desist ordered the named parties above from “offering securities in Texas through an offer containing a statement that is materially misleading or otherwise likely to deceive the public” as well as stopping them, “from engaging in any fraud in connection with the offer for sale of any security in Texas.”

The securities commissioner is claiming that Barhydt and Abra “made offers of investments in Abra Earn in Texas containing statements that were materially misleading or otherwise likely to deceive the public.”

An investigation into Abra Earn had started in 2022, with the letter saying that “Abra announced it would cease selling investments in Abra Earn in October 2022.”

However, in October 2022, Barhydt, Plutus Financial, Plutus Lending and Abra Boost “began offering and selling investments in Abra Boost, a digital asset depository account, to accredited and institutional investors in the United States.”

In March 2023, Barhydt was interviewed by state securities regulators, when “parties collectively operating as Abra were collectively insolvent or nearly insolvent.”

The cease and desist claims that Plutus Financial, Plutus Lending and Barhydt violated the Securities Act and “engaged in fraud.”

Abra, back in September of 2022, had plans to launch as the first regulated crypto bank in the US. It had planned to launch in the US in the first quarter of 2023. 

However, last December, Abra made personnel cuts across executives and other divisions following the collapse of FTX and a source told Blockworks that it had become difficult to “raise new money and get new capital into the company.”

Abra and Barhydt did not immediately respond to requests for comment. 


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Pipe’s testnet has delivered 60+ PB of data across ~290,000 Point of Presence (PoP) nodes

article-image

375ai will hold TGE at the end of the month, CEO Harry Dewhirst told Blockworks

article-image

Block’s subsidiary adds direct Bitcoin integration and AI-powered ordering tools for small businesses seeking streamlined transactions

by Blockworks /
article-image

The deal integrates Dinero’s staking suite into Plume’s real-world asset platform as it gains SEC transfer agent status

by Blockworks /
article-image

The state’s decision opens staking access to New Yorkers, signaling a regulatory shift toward broader crypto participation

by Blockworks /
article-image

The startup says it aims to rival Stripe and Worldpay by using stablecoins to speed merchant settlements from days to seconds

by Blockworks /