1broker Blacklisted and Domain Name Seized By the FBI and SEC
With several countries tightening their financial regulations when it comes to digital asset Invests, the US has so far taken the led when it comes to enforcing these regulations. The U.S. Securities and Exchange Commission (SEC) has filed charges against 1pool Ltd and its CEO Patrick Brunner. The broker’s domain name (1broker.com) has also been officially seized by the FBI.
1broker has Violated Federal Laws
It was reported by the SEC that the broker has violated federal laws relating to the Bitcoin-funded security-based swap. The broker was charged for allowing its users to partake in a live trading market and make trades using several trading instruments such as; commodity, stock, index markets, and most especially direct bitcoins, without proper registration of the users according to the KYC/AML laws put in place.
How SEC Got to Know
This fact was established by the SEC through its use of undercover agents. The agency states 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.”
SEC has made it known in its statement that it will do all it best to prosecute 1pool and Brunner to the full extent of the law. The agency along with the CFTC declared that they are seeking a permanent injunction against the defendants.
Similar Situation in Other Country
Similar situations are also being experienced in other countries, for example, Brazil. In the country, the Administrative Council for Economic Defense (CADE) reportedly launched a probe into the country’s major banks. This has been described as one of the major financial probes ever done in the region. The six banks involved in this probe includes: Banco do Brasil, Bradesco, Itaú Unibanco, Santander Brasil, Banco Inter and Sicredi.