Crypto lending platform Abra temporarily halts withdrawals, customers fear loss of assets

Many customers of #Abra , a cryptocurrency lending platform claiming to manage over 700 million USD, are expressing concerns as the company announces a temporary halt on withdrawals for international users.

The withdrawal halt and a history of troubles

An email that Abra sent to some customers in July stated that the suspension is part of a "broader risk management effort" and is affected by "external circumstances beyond control." However, the company has not made any public announcements, and CEO Bill Barhydt continues to promote the platform on social media while ignoring customer requests.

This situation highlights the risks of using crypto lending platforms, which offer high yields through unsecured lending activities. Many similar platforms like Celsius and BlockFi collapsed in 2022, causing billions of USD in losses for users.

Founded in 2014, Abra had to compensate 82 million USD to customers in the US in 2024 after being investigated by 25 states for operating without a license. The state Securities Commission #Texas previously accused Abra of securities fraud, claiming the company was insolvent or nearly so. The UK's Financial Conduct Authority (FCA) also warned that Abra is not authorized to provide services in the country.

Many of Abra's international customers report that they have been unable to access their funds since early June and have not received any responses from support.