US shutters 1Broker, files lawsuit against the platform

Oct 04, 2018 at 0:27

The United States has shuttered the operations of Bitcoin futures firm 1Broker allegedly for breaching money laundering regulations and offering securities as an unregistered dealer.

The US Securities and Exchange Commission (SEC) made the formal announcement in a press release, noting the Federal Bureau of Investigation has already shut the domain of the Marshall Islands-based securities dealer and bitcoin trading platform.

“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,” the regulator said.

The SEC and thr Commodity Futures Trading Commission (CFTC) have already filed lawsuits against 1pool Ltd., also known as 1Broker, as well as its CEO Patrick Brunner.

For its part, 1Broker said its legal team is coordinating with a US counsel and its legal team to represent 1Broker in both cases to revive its domain.

“We are currently engaging U.S. counsel who can represent us in the SEC/CFTC case. We expect that this takes a few days. We received the green light from our lawyers to set up a read-only version 1Broker to view balances and transaction history. ETA: 48 hours,” the team said in a Twitter post.

1Broker had expressed willingness to cooperate with authorities.