SEC and CFTC Charge 1Broker With Securities Law Violations
The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are suing a Marshall Islands-based Bitcoin futures firm for allegedly violating federal law reports Coindesk.
The SEC filed charges against 1pool Ltd. (1Broker) and against its CEO Patrick Brunner for selling security-based swaps to U.S. and international investors without "discretionary investment thresholds." What is also important, investors could only purchase these swaps with bitcoin, SEC claims. According to SEC,1Broker was not registered a "security-based swaps dealer" and "failed to transact its security-based swaps on a registered national exchange." It added:
"The SEC alleges that a Special Agent with the Federal Bureau of Investigation, acting in an undercover capacity, successfully purchased several security-based swaps on 1Broker's platform from the U.S. despite not meeting the discretionary investment thresholds required by the federal securities laws."
Also CFTC filed charges against 1Broker for similarly violating federal laws by failing to implement anti-money laundering and supervisory features.
The FBI later reported it had seized the 1broker.com domain, claiming the company has violated money laundering and wire fraud laws, in addition to "operating as an unregistered broker/dealer of securities" and "operating as an unregistered futures commission merchant."
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