U.S Regulators Go After ‘Unregistered’ Bitcoin Futures Company
Regulators now want the firm barred from operating within America and also pay penalties as stipulated in the law.
1Brooker Sued Over Violation of Securities Laws
The U.S. Securities and Exchange Commission and CFTC have filed a suit against a renowned securities agent from the Marshall Islands. The dealer is accused of going against the federal regulations when he issued a security swap backed by bitcoin.
Through a press release, SEC revealed that it was charging 1Broker. The firm’s boss Patrick Brunner will also face charges for offering the swaps to both US and international clients while ignoring laid down laws. He is alleged of failing to meet the basic requirements needed. From the statement, clients are said to have only bought the swaps using bitcoin only.
The firm is also facing accusations of operating without any registration documents as a security dealer. Additionally, the firm is accused of failing to lists the swaps with a legalized national trading platform.
The authorities build their case after an FBI undercover agent investigated the matter. The agent is said to have bought a number of security-based swaps offered by 1Broker within America. The agent’s transaction was successful despite not adhering to all the federal law requirements.
According to Shamoil Shipchandler from SEC, the commission aims to safeguard interests of investors on various platforms despite the currency used during payments. He noted that multinational firms with operations in the US must adhere to the local laws even when using cryptocurrencies.
In the case, SEC wants the court to bar the firm from operating within the US. Additionally, the controller wants the firm slapped with fines and accumulated interest.
The CFTC had filed a suit against the firm for allegedly breaking the law in regards to money laundering. CFTC claims that 1Broker failed to enact anti-money laundering policies.
A statement from FBI indicates that the 1broker.com website has already been seized over money laundering concerns. Additionally, the bureau claims to have evidence indicating that the firm is not registered to operate in the US.
1Broker is yet to comment on the allegations. It will be interesting to see the defense fronted by the firm.