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 “ broader risk management efforts ” and “ external circumstances outside of our control. “ Silent Crisis Unfolds as CEO Continues Public Promotion Customers report being unable to withdraw funds for several weeks, with support representatives cutting them off and ignoring requests for explanations. Users have taken to social media platforms to plead directly with CEO Bill Barhydt, who continues promoting the company while avoiding customer inquiries. Source: Comments under Barhydt’s X post The crisis emerged just over a year after Abra reached settlements with 25 US states requiring $82 million in customer refunds for operating without proper licenses. The platform previously faced insolvency allegations from Texas regulators in 2023, who claimed Abra had been insolvent since March 2023. Customer reports of missed payments and withdrawal issues began appearing online in early June, with affected users describing zero yields on accounts that previously generated returns. Source: Comments under the company’s X post The situation recalls the collapse of major crypto lenders, including Celsius and BlockFi , in 2022. Speculatively, Abra appears to offer high yields through unsecured lending and DeFi activities. The platform recently launched new services targeting institutional clients and high-net-worth individuals, but it is facing mounting customer service failures. Pattern of Regulatory Violations and Financial Distress Abra’s current crisis follows years of regulatory violations and financial difficulties across multiple jurisdictions. In June 2023, the Texas State Securities Board accused the platform of securities fraud , alleging Abra misled investors while operating in a state of insolvency or near-insolvency. Texas regulators claimed Abra secretly transferred over $118 million in digital assets to Binance while concealing financial information about loan defaults and asset transfers. The board alleged Abra held $30 million in failed lender Babel Finance, $30 million in Genesis, and $10 million in collapsed Three Arrows Capital. The platform reached a $82.1 million settlement with 25 US states in June 2024 for operating without required money transmission licenses. Under the agreement, CEO Bill Barhydt was personally barred from involvement in money transmission services within those states for five years. The UK’s Financial Conduct Authority warned in November 2023 that Abra was not authorized to offer services in the country and advised against dealing with the firm. Georgia’s Banking and Finance Department ordered Barhydt to be personally liable for returning funds to US customers. The SEC settled charges against Abra in August 2024 for improperly marketing Abra Earn as an unregistered security. At its peak, Abra Earn managed approximately $600 million in assets, with nearly $500 million from US investors before the program was phased out. Multiple state investigations revealed Abra offered crypto transactions through its mobile app without the necessary licenses, leading to the forced cessation of US operations and customer fund returns. International Customers Left Without Recourse as Platform Struggles The current withdrawal pause appears to affect only international customers, with unclear reasons for the geographic limitation. Alan, a customer from Guatemala, reported through DLNews being unable to access $1,200 deposited on the platform after noticing zero yields on previously interest-bearing accounts. Customer service responses have become increasingly generic, with official Abra accounts providing stock responses offering little guidance or help. Recent Trustpilot reviews describe representatives cutting off communications and ignoring fund access requests entirely. CEO Barhydt continues to appear on podcasts and post multiple times daily on social media, while customers plead for responses in the comment sections. The disconnect between promotional activities and customer service failures has intensified user frustration and concern. The platform’s claimed $700 million in managed assets represents significant customer exposure if withdrawal restrictions persist or expand. Unlike previous crypto lender collapses that affected primarily US customers, international users may have limited regulatory recourse. In mid-2024, Abra launched Abra Prime and Abra Private platforms for institutional and high-net-worth clients while simultaneously struggling to serve existing retail customers. The platform also introduced Abra Treasury for corporate Bitcoin reserve management despite ongoing operational difficulties. As it stands now, neither Abra nor CEO Bill Barhydt has provided public statements addressing the withdrawal pause or customer concerns. The post Crypto Lender Abra Secretly Pauses Withdrawals, Customers Fear $700M Platform Collapse appeared first on Cryptonews .
