Abra Acquires Valkyrie Cryptocurrency Trusts in Major Deal

Points

• Abra acquires several cryptocurrency trusts from Valkyrie Investments.
• The acquisition includes Tron and Zilliqa trusts, expanding Abra’s services.
• Regulatory challenges lead Abra to stop accepting cryptocurrency from US customers.

Abra, a prominent crypto trading platform, has acquired several private cryptocurrency trusts from Valkyrie Investments. This acquisition includes the Tron and Zilliqa trusts, expanding Abra’s range of services.

Expanding Services

According to Bloomberg, Abra Capital Management LP took over Valkyrie’s Tron and Zilliqa trusts, among others. The Zilliqa Trust had sold $21.3 million in assets, while the Tron Trust had sold $50 million.

Regulatory Challenges

The Conference of State Bank Supervisors （CSBS） announced that Abra will stop accepting cryptocurrency from US customers for its Abra Trade accounts. Regulators in several states decided not to impose monetary penalties to ensure full reimbursement to customers.

Legal Issues

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.

解説

• Service Expansion: Abra’s acquisition of Valkyrie’s cryptocurrency trusts significantly expands its service offerings.
• Regulatory Compliance: Facing regulatory challenges, Abra has ceased accepting cryptocurrency from US customers to comply with state regulations.
• Legal Settlement: Abra’s settlement with Texas regulators highlights its commitment to resolving legal issues and maintaining customer trust.