The Department of Banking News Bulletin
Bulletin # 3182 - Week Ending February 14, 2025
This Bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be directed to Jorge L. Perez, Banking Commissioner. Written comments will be considered only if they are received within ten business days from the date of this bulletin.
BANK ACTIVITY
Order for Hearing
A hearing will be held on the application of Fnality International Limited to organize Fnality Bank US (Fairfield County, CT) as a Connecticut innovation bank pursuant to Section 36a-70(t) of the Connecticut General Statutes. The hearing will take place on March 12, 2025 at 2:00 p.m. at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut, via videoconference.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Plutus Financial Holdings Inc., Plutus Financial Inc., Plutus Lending LLC, Abra Boost LLC and William Barhydt
On February 13, 2025, the Banking Commissioner entered a Consent Order (No. CO-24-2024-1-S-S) with respect to Plutus Financial Holdings Inc., Plutus Financial Inc., Plutus Lending LLC, Abra Boost LLC and William Barhydt. The four entities are affiliated and under the common control of William Barhydt.
The Commissioner's action was preceded by a multistate investigation into the securities activities of the Respondents. Connecticut participated in that investigation. More specifically, the multistate investigation focused on Respondents’ offer and sale of interest-bearing depository account products, referred to as “Abra Earn” and “Abra Boost.” Members of the public purchased the investments through a smartphone application.
Respondents began winding down their U.S. retail operations on or about June 14, 2023, and converted all Abra Earn and Abra Boost accounts to Abra Trade accounts. Immediately upon conversion to Abra Trade, customers obtained title to their assets and a yield was no longer generated. Since June 14, 2023, Respondents have repeatedly notified affected customers requesting them to withdraw their assets from their Abra Trade accounts.
The Consent Order required that the Respondents return all outstanding assets in Connecticut customer accounts having a value of $10 or more no later than the date the Consent Order was entered by the Commissioner.
Approximately 93 Connecticut investors, whose accounts totaled approximately $98,609, were eligible for a monetary return. Approximately $92,838 has been paid out to those Connecticut investors whom Respondents were successful in contacting.
The Consent Order alleged that the Respondents violated Section 36b-16 of the Connecticut Uniform Securities Act by selling unregistered securities to the public.
The Consent Order directed the Respondents to cease and desist from regulatory violations and to pay a $100,000 fine to the state. Payment of the fine, however, would be suspended as long as Respondents returned customer assets in accordance with the Consent Order.
Dated: Tuesday, February 18, 2025
Jorge L. Perez
Banking Commissioner