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CFTC and SEC clamp down on crypto CFD provider 1Broker

 

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have both filed charges against 1Broker, a CFD provider focused on cryptocurrencies. According to both US agencies, the company operating 1Broker, 1pool Ltd., has violated the Commodity Exchange Act, as well as the federal securities laws regarding security-based swaps funded with Bitcoins.

 

More specifically, 1Broker is accused of willfully operating as an unregistered broker/dealer of securities and futures commission merchant, as well as of money laundering. On top of that, the FBI has seized the 1Broker.com domain.

 

 

SEC and CFTC have also taken action against 1Broker’s CEO, Patrick Brunner, who is allegedly based in Austria. The company 1pool Ltd., on the other hand, is not authorized to provide financial services by any governmental authority. It is registered offshore, on the Marshall Islands. SEC is looking for a permanent injunction against Brunner and 1pool, along with penalties and "disgorgement plus interest."

 

Commenting on the matter, Shamoil Shipchandler, director of the SEC’s Fort Worth, Texas regional office, said that “international companies that transact with U.S. investors cannot circumvent compliance with the federal securities laws by using cryptocurrency.”

 

In a response to the actions taken against it, the company tweeted that it will fully cooperate with the authorities, and, if approved by SEC, 1Broker will process withdrawals for all customers on an alternative domain.

 

TAGS: CFTC  SEC  US  1Broker  regulation 
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