The U.S. Securities and Exchange Commission (SEC) has filed charges against the CEO of 1Broker, Bitcoin crypto trading platform, according to an SEC press release issued on September 27. The SEC alleged that 1Broker and its CEO, Patrick Brunner violated the federal securities laws in connection with security-based swaps funded with bitcoins.
The 1Broker platform which is a Marshall Islands-based securities dealer was recently taken down by the U.S. authorities. The FBI shut down the platform and seized the domain of 1Broker. The platform was shut down for allegedly violating money laundering regulations and distributing securities as an unregistered dealer.
The Bitcoin crypto trading platform 1Broker’s team released a statement on October 2 on social media. According to the statement, the firm is working with a U.S. counsel and its legal team to represent them in the SEC/CFTC case in an attempt to recover the platform. On September 27, 1Broker emphasized that it will cooperate with the SEC and the authorities to partially re-enable the platform to allow withdrawals for its users.
The SEC has filed a complaint against the platform in the U.S. District Court for the District of Columbia. The SEC is seeking permanent injunctions, penalties and disgorgement plus interest in its complaint. The Commodity Futures Trading Commission (CFTC) in a parallel action also announced charges against 1Broker due to a similar conduct.
The SEC investigation is led by Morgan Ward Doran and David Hirsch under the supervision of Eric R. Werner and Scott Mascianica of the SEC’s Fort Worth Regional Office. The litigation will be led by Chris Davis under the supervision of B. David Fraser, as mentioned in the SEC press release.
As of October 2, the official domain of 1Broker crypto trading platform still displayed a statement from the FBI. A government enforcement defence and securities litigation attorney at Kobre & Kim LLP, Jake Chervinsky, stated that an undercover FBI agent initiated an unregistered security-based swap on March 30, 2016. It took more than two years time for the FBI and the SEC to take action and shut down the exchange, as stated in the CCN report.
The post SEC Files Charges Against CEO Of 1Broker, Bitcoin Crypto Trading Platform appeared first on OWLT Market.
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