To Our Valued Customers & All Crypto Enthusiasts Across the Globe,
Our hearts go out to everyone affected by the current situation with FTX and their sister company Alameda. Dealing with financial losses is never easy and this is likely a hardship for many people affected.
In light of these events, I want to share a few important updates:
No Exposure to FTX and Alameda: I can report that Abra’s retail, lending and private crypto wealth management businesses don’t have any exposure to Alameda and have no material exposure to FTX or the FTT token. Abra did use FTX for some trading activities. We moved most assets off of FTX and hedged our exposure on those that remain.
Managing Risk in Crypto: Why has Abra been able to manage risk so effectively when others have struggled?
- First, Abra has strict risk management and oversight policies for both lending and DeFi. Losses in lending are inevitable. Every lender suffers losses. The key is to practice sound risk management to minimize the impact of losses while maintaining a reasonable level of profitability. We are always prepared to answer questions about our borrowers and why they are viable borrowers. I have always believed this level of transparency is essential to be successful for our customers.
- Second, this insolvency event at FTX along with Voyager, Celsius and the issues at BlockFi appear to stem from risky business practices, in some cases fraud. For FTX, specifically, it includes conflicts of interest between deeply intertwined entities accompanied by the potential misuse of customer funds.
Abra Trade always maintains 100% reserves and customers can deposit and withdraw funds from Abra Trade anytime, meaning 24×7 for crypto withdrawals and anytime during normal bank hours for bank withdrawals. Abra Boost in the U.S. is currently only available to accredited investors.
Regulation and Oversight: Abra is a U.S.-based company. We have partnered with regulated companies such as American Express, Prime Trust, Fireblocks and Moonpay. Recently we announced our intent to launch Abra Bank in the United States and Abra International for similar regulated activities outside the United States.
We believe in transparency, oversight and personal agency. Abra is fully committed to working with appropriate regulatory bodies in every jurisdiction we operate in to maintain all appropriate levels of compliance and oversight.
Moving Forward: Ultimately, I believe that DeFi and new technologies like Multi-Party Computation (MPC) will enable us to build a better banking system that eliminates many fragile aspects of centralized trust while providing full transparency accompanied by the oversight of appropriate regulatory bodies. Abra will continue to embrace these technologies as they mature.
Team Abra: Lastly, let me say that in over 30 years in business this has been one of the most challenging business environments one could ever face. The fact that the Abra team has weathered this environment so well is a true testament to the quality of our people, focus, grit and determination. We’re here with you for the long term for all your digital asset needs.
You can read more about our approach to transparency and risk management here.
Warm Regards,
Bill Barhydt
Founder & CEO
About Abra
Established in 2014, Abra is on a mission to create a simple and honest platform that enables millions of cryptocurrency holders to maximize the potential of their assets. Abra enables both individuals and businesses to safely and securely buy, trade, and borrow against cryptocurrencies – all in one place. Abra’s vision is an open, global financial system that is easily accessible to everyone.
Why Abra
Based in the United States, Abra is available in over 150 countries and makes it easy to convert between crypto and a wide variety of local fiat currencies. With over 2MM customers, $7B in transactions processed, and $1.5B in assets under management, Abra continues to grow rapidly. Abra is widely loved and trusted – in April 2022, pymnts.com reviewed and rated Abra amongst the top 5 most popular crypto wallets in the market. Abra is backed by top-tier investors such as American Express Ventures and First Round Capital.
How Abra Protects Your Funds
Abra places clients’ financial objectives and security first. Abra practices a culture of risk management across all levels and functions within the organization.
Abra employs a state-of-the-art enterprise risk management framework that comprises a comprehensive set of policies, procedures, and practices detailing all applicable risk-related objectives and constraints for the entirety of the business. Abra has instituted a complete set of requisite systems and controls that continuously enforce these policies, procedures, and practices to manage all operations, including credit and lending. Abra’s independent Risk Committee comprises experienced compliance, risk, securities, and fraud operations professionals with backgrounds in industries ranging from traditional and digital assets banking, payments, remittance, to fintech.
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