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Due to the growing concerns about paused withdrawals on the crypto lending platform, Abra CEO Bill Barhydt has responded, claiming that only a small number of legacy app users have been affected by the issue.
Abra CEO Response
In an X thread, Barhydt dismissed recent media reports as inaccurate, claiming they misrepresented the company’s status.
“As Abra is quietly building the killer platform for managing crypto custody, yield, staking, and lending, once again the CT-“press” continues to publish drivel without fact-checking and simply makes up nonsense to support its click growth.”
Bill Barhydt, Chief Executive Officer, Abra
He asserted that Abra’s core operations remain strong, highlighting that its private client division manages crypto deposits through client-owned vaults, though the platform’s $700 million AUM claim has faced scrutiny amid recent withdrawal issues.
Barhydt also added that Abra is now onboarding Registered Investment Advisers to extend crypto services to wealth management clients and encouraged broader adoption through traditional financial channels.
On the other hand, addressing the withdrawal concerns, Barhydt acknowledged that a small number of legacy international users from the company’s previous app are currently unable to access services.
“I know that a small number of international ‘old app’ retail clients are unable to access Earn and Borrow. My apologies. We will be in touch with you directly as soon as possible.”
Bill Barhydt, Chief Executive Office, Abra
Clarification on CPRX
In response to a reply about Abra’s CPRX token, Barhydt clarified that the asset was a reward token, not a utility token, and was never sold by the company. He said CPRX was distributed for free through airdrops and was discontinued when Abra shut down its legacy app.
Crypto Perx, most known as CPRX, was launched in 2021 as a token central to Abra’s customer rewards program, Abra Perx, offering users benefits such as bonus yields, cashback on trades, and referral incentives. Developed by the Crypto Banking Alliance and issued to Abra, CPRX was designed to enhance engagement and maximize returns on the platform, with the option to stake or trade the token.
Although Barhydt recently downplayed CPRX as a non-saleable rewards token distributed via airdrops, Abra’s 2021 press release explicitly described CPRX as a utility token designed to power its rewards ecosystem.
Context on the Abra Reports
Barhydt’s remarks follow July reports that revealed Abra had paused withdrawals for some users of its “Abra Earn International” product.
According to the report, dozens of customers have complained they were locked out of their funds as early as June and received little to no communication from Abra’s support team.
In an email sent to affected users, the company said the decision to halt withdrawals was influenced by “external circumstances” and part of broader “risk management efforts.”
In the Philippines, some local community members also shared their experiences on the platform after the news about the paused withdrawals was released. The comment sections (1,2) are critical of Abra, with many users sharing personal experiences of lost funds, failed withdrawals, and poor customer service.
Several commenters accused Abra of being a scam, referencing issues dating back to 2022, particularly around the CPRX token and the platform’s handling of withdrawals.
Some said they were never able to recover their assets; one commenter even shared they were blocked after confronting the CEO on social media.
What is Abra?
Abra, founded in 2014, is claiming to be designed as a wealth management service. The web3 company also provides digital asset services, including trading and lending, particularly for institutional clients and high-net-worth individuals. It operates as a platform connecting the on-chain and off-chain crypto ecosystems, offering services like prime brokerage and treasury solutions.
Abra also claims to manage over $700 million in assets and markets itself as compliant with U.S. Securities and Exchange Commission regulations.
However, its reputation has been marred by legal scrutiny. In 2024, it refunded $82 million to U.S. customers as part of a settlement with 25 states over operating without proper licenses. Barhydt was also barred from participating in money transmission services in those states for five years.
In 2023, the Texas State Securities Board accused the company of securities fraud, and in 2024, the state of Georgia ordered Barhydt to personally return customer funds.
This article is published on BitPinas: Abra CEO Bill Barhydt Responds: Only a Few Old App Users Affected by Withdrawal Pause
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