US SEC charges Abra + Plutus Technologies Philippines Corp for Security Swapping

[Baofeng]

Kababasa ko lang nito,

SEC Charges App Developer for Unregistered Security-Based Swap Transactions

The Securities and Exchange Commission today charged California-based Abra and a related firm in the Philippines for offering and selling security-based swaps to retail investors without registration and for failing to transact those swaps on a registered national exchange.

According to the SEC’s order, Abra developed and owns an app that enabled users to bet on price movements of U.S.-listed equity securities.  Using the app, individuals were able to enter into contracts that provide synthetic exposure to price movements of stocks and exchange-traded fund (ETF) shares trading in the U.S. through blockchain-based financial transactions with Abra or with related company Plutus Technologies Philippines Corp.  The order finds that Abra told users they could choose securities whose performance they wanted to mirror, and the value of their contract would go up or down the same amount as the price of the underlying security.  The order further finds that these contracts were security-based swaps subject to U.S. securities laws.

https://www.sec.gov/news/press-release/2020-153

So Plutus Technologies Philippines Corp ang tinutukoy na company na partner nila sa pinas. Sa ngayon hindi pa naman alam ang implikasyon nito pero sa malamang ma drag sila sa kaso nito. Alam naman natin na ang Abra at isang naging options natin maliban sa coins.ph, kahit ako may mobile wallet ako na ginagamit using Abra. So konting ingat lang baka biglang ma-freeze ang mga account natin, hindi naman sa tinatakot ko kayo or something, mabuti nang maging alisto at sigurista tayo.

[1715152832]

1715152832

[1715152832]

1715152832

[1715152832]

1715152832

[1715152832]

1715152832

[serjent05]

Much better na iwithdraw na lang ang mga funds from Abra wallet para siguradong iwas freeze.  Iwasan na rin muna ang paggamit ng services nila. marami namang alternative dyan na pwedeng gamitin.  No need na maghintay pa kung ano ang next step ng US SEC, di naman kawalan kung aagapan natin pag-aksyon/react ukol sa issue na ito.

[mk4]

It's about ung pagbenta ng Abra dati ng "synthetic" stocks dati, which inalis rin nila agad months ago; most likely dahil narealize rin nila na may pagka illegal ung feature na inimplement nila regardless kung hindi talaga sila nagbebenta ng actual stocks and ETFs.

As far as I know, ang ramification lang nito e ipepenalize lang siguro ang Abra dahil dito. Probably nothing more than that.

[dothebeats]

As far as I know, ang ramification lang nito e ipepenalize lang siguro ang Abra dahil dito. Probably nothing more than that.

This.

Penalty or fines lang naman ang kaukulang consequences when it comes to such violations. Hindi naman automatic na cancellation of permit/operating license yung katumbas ng ginawa ng Abra in collaboration with Plutus. Siguro kaya pinush through ng Abra ang ganitong type of trades dito sa atin e dahil wala namang maayos na draft tungkol dito dahil involved ang blockchain tech. They might took that 'loophole' para i-introduce ang ganitong feature sa service nila though hindi ito nag-work, at kaagad naman nilang ipinatigil ito AFAIK.

No need to withdraw assets IMO, pero kung paranoid sa paranoid, then I guess it's better to be safe than sorry ika nga.

[Theb]

Abra launches stock and ETF Investing in PH with $0 trading fees for 2019

Abra, the world’s first global investment app, announced the general availability of an industry first — the opportunity for investors in the Philippines and international countries to invest in traditional stocks and ETFs using Bitcoin. This product announcement is the next step in Abra’s vision to use Bitcoin’s programmable money features to create and democratize new financial products and services for users across the globe.

Mukhang matagal na rin pala nila ito ginawang available sa Pilipinas at medyo nakakagulat na ngayon lang nakita ng SEC natin ito especially when you think that the app is already considered the 2nd most popular crypto wallet here in the Philippines. There is no argument na yung product ng Abra na linabas nila is illegally running dahil na rin out of scope sa business nila yung ETFs at stock lalong lalo na ang foreign investment without the authorization of SEC kaya medyo naging careless sila dito pero sa tingin ko sanctions lang naman ang matatanggap nila at wala namang suspension ito lalong lalo na sa first time violator.

So konting ingat lang baka biglang ma-freeze ang mga account natin, hindi naman sa tinatakot ko kayo or something, mabuti nang maging alisto at sigurista tayo.

I don't think that the SEC will go this far specially dahil ang Abra is already a registered company under Plutus Technologies Philippines Corporation. Basically sila ay legal entity na meron lamang unregistered feature which is commodity trading or ETFs na dapat talaga ay maging rehistrado dahil na labas sa na sa business nila ito which is cryptocurrencies. Like I said mukhang sanction lang ang makukuha ng Abra dito at baka kailangan lang nila mag-undergo sa right procedures before they can officially launch their ETFs again.

[jademaxsuy]

Abra launches stock and ETF Investing in PH with $0 trading fees for 2019

Abra, the world’s first global investment app, announced the general availability of an industry first — the opportunity for investors in the Philippines and international countries to invest in traditional stocks and ETFs using Bitcoin. This product announcement is the next step in Abra’s vision to use Bitcoin’s programmable money features to create and democratize new financial products and services for users across the globe.

Mukhang matagal na rin pala nila ito ginawang available sa Pilipinas at medyo nakakagulat na ngayon lang nakita ng SEC natin ito especially when you think that the app is already considered the 2nd most popular crypto wallet here in the Philippines. There is no argument na yung product ng Abra na linabas nila is illegally running dahil na rin out of scope sa business nila yung ETFs at stock lalong lalo na ang foreign investment without the authorization of SEC kaya medyo naging careless sila dito pero sa tingin ko sanctions lang naman ang matatanggap nila at wala namang suspension ito lalong lalo na sa first time violator.

So konting ingat lang baka biglang ma-freeze ang mga account natin, hindi naman sa tinatakot ko kayo or something, mabuti nang maging alisto at sigurista tayo.

I don't think that the SEC will go this far specially dahil ang Abra is already a registered company under Plutus Technologies Philippines Corporation. Basically sila ay legal entity na meron lamang unregistered feature which is commodity trading or ETFs na dapat talaga ay maging rehistrado dahil na labas sa na sa business nila ito which is cryptocurrencies. Like I said mukhang sanction lang ang makukuha ng Abra dito at baka kailangan lang nila mag-undergo sa right procedures before they can officially launch their ETFs again.

okay magagawan dn naman ng paraan yan. Pwde nmn kasi e apply yung mga features na kulang para makapag operate sila. Uu pwde mapahinto yung operation sandali yung sa mga hindi na register na features at pagkatapos ma apply mg ooperate na ulit yan at sure ako na sisigla ang ganitong klase na app. Kahit nga coins.ph di ko inakala na dadami ang kanilang users from invite2x and free 50 php worth every invite. Kailangan na rin ng kumpetisyon gaya nito para hindi ma monopolize app ng kagaya nito.

[Bttzed03]

Hindi na-mention sa OP na US SEC (hindi Pinas SEC) and nag-charge sa Abra at Plutus Tech although makikita naman yan kapag binuksan yung article at basahin yung title. Paglilinaw lang.

It's about ung pagbenta ng Abra dati ng "synthetic" stocks dati, which inalis rin nila agad months ago; most likely dahil narealize rin nila na may pagka illegal ung feature na inimplement nila regardless kung hindi talaga sila nagbebenta ng actual stocks and ETFs.

Kelan ulit nila tinigil?

They stopped in Feb. 2019 but then resumed operation noong may 2019. They tried to outsmart the US SEC and CFTC by blocking customers residing in the US and moved some of their operations dito sa Pinas pero the authorities saw na meron pa din silang binebenta sa US.

~ As far as I know, ang ramification lang nito e ipepenalize lang siguro ang Abra dahil dito. Probably nothing more than that.

~ Like I said mukhang sanction lang ang makukuha ng Abra dito at baka kailangan lang nila mag-undergo sa right procedures before they can officially launch their ETFs again.

Slapped with $300K fine by US SEC and CFTC ($150K for each agency). Wala namang angal yung dalawang kumpanya dahil maliit lang na halaga siguro yan para sa kanila. Other than the fine, both companies also agreed to a cease-and-desist order. This is the part na unclear sa akin. Ano kaya yung sakop ng CDO? I believe it only covers the selling of security-based swaps.

~ Mukhang matagal na rin pala nila ito ginawang available sa Pilipinas at medyo nakakagulat na ngayon lang nakita ng SEC natin

Alam naman siguro pero they just let the US SEC to take the lead at nag-assist na lang sila.


 

[mk4]

Kelan ulit nila tinigil?

They stopped in Feb. 2019 but then resumed operation noong may 2019. They tried to outsmart the US SEC and CFTC by blocking customers residing in the US and moved some of their operations dito sa Pinas pero the authorities saw na meron pa din silang binebenta sa US.

Di ko maalala specifically. Basta nag notification nalang months and months ago na lahat ng stocks na hawak ko will automatically be converted into BTC ata o PHP after a certain date. Naamaze rin kasi ako dati kung paano nila nahanapan ng paraan para makapagtrade ung mga tao ng stocks and ETFs kaya sinubukan ko lang maglagay ng around ₱2000 for testing purposes. Ayun, di tumagal ng isang buwan sa wallet ko.

[Baofeng]

Much better na iwithdraw na lang ang mga funds from Abra wallet para siguradong iwas freeze.  Iwasan na rin muna ang paggamit ng services nila. marami namang alternative dyan na pwedeng gamitin.  No need na maghintay pa kung ano ang next step ng US SEC, di naman kawalan kung aagapan natin pag-aksyon/react ukol sa issue na ito.

Yun lang talaga ang advise ko at iyon ang una kong naisip, maaring hindi sang ayon ang iba pero mabuti na ang maagap.

It's about ung pagbenta ng Abra dati ng "synthetic" stocks dati, which inalis rin nila agad months ago; most likely dahil narealize rin nila na may pagka illegal ung feature na inimplement nila regardless kung hindi talaga sila nagbebenta ng actual stocks and ETFs.

As far as I know, ang ramification lang nito e ipepenalize lang siguro ang Abra dahil dito. Probably nothing more than that.

Sana nga penalty lang, alam naman natin pag US SEC ang tumabraho, malinis, kung penalty baka malaki laki ang isukang pera baka madamay ang negosyo ng Plutus.

[bL4nkcode]

Sana nga penalty lang, alam naman natin pag US SEC ang tumabraho, malinis, kung penalty baka malaki laki ang isukang pera baka madamay ang negosyo ng Plutus.

Yep, nasa 300k$ yung fine na na imposed sa dalawang company, dibale tig 150k$ sila. So far nothing more than that.

The thing is hindi nila in'acknowledge yung ginawa nila, bumayad lang sila base sa fine ng SEC and CFTC.

In each case, Abra and Plutus were able to pay the fine, with no admittance to any wrongdoing.

[Theb]

It's about ung pagbenta ng Abra dati ng "synthetic" stocks dati, which inalis rin nila agad months ago; most likely dahil narealize rin nila na may pagka illegal ung feature na inimplement nila regardless kung hindi talaga sila nagbebenta ng actual stocks and ETFs.

As far as I know, ang ramification lang nito e ipepenalize lang siguro ang Abra dahil dito. Probably nothing more than that.

Sana nga penalty lang, alam naman natin pag US SEC ang tumabraho, malinis, kung penalty baka malaki laki ang isukang pera baka madamay ang negosyo ng Plutus.

I just looked at the Twitter pages of both the CEO of Abra and the Company and wala kang makikitang tweets in relation sa naging charge sa kanila ng US SEC so mukhang hindi naman ganun kalala yung naging violation nila. I was also looking for following updated in the SEC website and wala na din naging follow up tungkol dun at mukhang nagkaroon na din ng settlement between the two parties. Nagawa pang mag tweet ng CEO nila about upcoming products for their ABRA app a day after the press release of the US SEC. So mukhang wala naman tayong masyadong ipag-aalala na baka magkaroon ng temporary closure sa kanilang business, the good thing about this is after they settle alam na natin na legal na yung operation nila and maybe they will be cautious sa upcoming product launches nila.

Abra's business is doing very well with our loyal US users leading the way. We have users in 100 countries with people making $ millions in deposits via bank, stablecoin, #Bitcoin
, credit card and over 50 other cryptocurrencies.

Stay tuned for some awesome product announcements!

[iTradeChips]

I have been asking before about Abra and have tried the app and I don't see anything that would make it "scammy" in a sense. So siguro this, in my opinion, might be called a minor bump for Abra, and not really nothing that we can worry about. If this is a major issue then Abra would be making steps to ensure people using their app will be informed in a manner that will not cause panic among its users.

[Bttzed03]

~
Di ko maalala specifically. Basta nag notification nalang months and months ago na lahat ng stocks na hawak ko will automatically be converted into BTC ata o PHP after a certain date.

They are good, lalo na yung legal department nila, at natunugan agad na under investigation nanaman sila. That might also explain kung bakit medyo magaan ang penalty na pinataw sa kanila. 

Naamaze rin kasi ako dati kung paano nila nahanapan ng paraan para makapagtrade ung mga tao ng stocks and ETFs kaya sinubukan ko lang maglagay ng around ₱2000 for testing purposes. Ayun, di tumagal ng isang buwan sa wallet ko.

Good on you na tinesting mo muna with a small amount. Baka mas malala pa pwedeng mangyari at maipit pondo mo dun kung sakali.

~
I just looked at the Twitter pages of both the CEO of Abra and the Company and wala kang makikitang tweets in relation sa naging charge sa kanila ng US SEC so mukhang hindi naman ganun kalala yung naging violation nila.

Damage control? The best way to do that is to show customers that it's "business as usual".

I have been asking before about Abra and have tried the app and I don't see anything that would make it "scammy" in a sense.

They're not scammy na kagaya nung mga ponzi schemes o yung mga nag-exit scam. They became a bit greedy in this case at inakala nilang malulusutan nila yung batas sa US regarding securities.

[rhomelmabini]

Isinara ng Abra ang isang $ 55 milyong Series C na pondo sa pagpopondo. Ang mga namumuhunan ay Blockchain Capital, IGNIA, Kingsway Capital, Tiga Investments, Stellar Development Foundation, Amex Ventures, Arbor Ventures, RRE Ventures, CMT Digital Ventures, Kenetic Advisors at iba pa. https://www.businesswire.com/news/home/20210915005109/en

Akala ko isinara yung Abra, meaning the "deal was closed" pala. Nagtataka lang ako kung ano kaya yung mga features na i-expand ng service nila at hoping it will be the P2P or possible na DeFi like staking kasi nabanggit sa article regarding DeFi or maybe isnag merkado ng NFT pero espekulasyon ko lang ang mga ito pero possibilities are endless sa crypto at $55M ay isang napakalaking pondo para mas mag improve pa sila or expand into other ventures than wealth management.

[ice18]

Akala ko isinara yung Abra, meaning the "deal was closed" pala. Nagtataka lang ako kung ano kaya yung mga features na i-expand ng service nila at hoping it will be the P2P or possible na DeFi like staking kasi nabanggit sa article regarding DeFi or maybe isnag merkado ng NFT pero espekulasyon ko lang ang mga ito pero possibilities are endless sa crypto at $55M ay isang napakalaking pondo para mas mag improve pa sila or expand into other ventures than wealth management.

Sobrang laking pondo niyan, Isa na ba dito yung mangyayari sa October 7? Nakapost sa website nila countdown sa date na yan at mukhang malaking pasabog ang gagawin ni Abra, posible nga mag defi or nft marketplace ito or isang Dex like AMM exchange na may new features, well abangan nalang natin ito  malapit na rin naman October ganda ng timing usually nasa uptrend kapag ganitong month. 

[rhomelmabini]

Sobrang laking pondo niyan, Isa na ba dito yung mangyayari sa October 7? Nakapost sa website nila countdown sa date na yan at mukhang malaking pasabog ang gagawin ni Abra, posible nga mag defi or nft marketplace ito or isang Dex like AMM exchange na may new features, well abangan nalang natin ito  malapit na rin naman October ganda ng timing usually nasa uptrend kapag ganitong month. 

Can't say for sure pero parang isang sorpresa ito sa crypto community, sa mga feature na nabanggit mo parang malabo diyan yung DEX, just my two cents pwede pa siguro yung staking feature or ang isang NFT marketplace na may twist like for Philippine NFT only something like that (just my idea at opinion). Siguro may hint na sila rito at nakaligtaan lang natin.