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Crypto Lender Abra Secretly Pauses Withdrawals, Customers Fear $700M Platform Collapse

2025-07-29 14:22:48

Main Idea

Crypto lender Abra has secretly paused withdrawals, raising fears of a $700M platform collapse, while facing regulatory violations and financial distress.

Key Points

1. Abra paused withdrawals without public announcement, with customers unable to access funds for weeks.

2. The platform, managing over $700M in assets, reached an $82.1M settlement with 25 US states for operating without required licenses.

3. CEO Bill Barhydt was barred from involvement in money transmission and held personally liable for returning funds to US customers.

4. Abra faced accusations of secretly transferring $118M and holding assets in failed lenders like Babel Finance and Three Arrows Capital.

5. International customers report lack of access to funds, with limited regulatory recourse available.

Description

Crypto lender Abra has quietly paused withdrawals for international customers without public announcement, sparking fears of another major platform collapse similar to Celsius and BlockFi as desperate users flood social media demanding access to their frozen funds. According to DLNew , the platform, which claims to manage over $700 million in customer assets, notified some users via email on July 19 that “ Abra Earn international services are currently paused, effective immediately ” due to “ br...

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