United States CFTC [Commodity Futures Trading Commission] has recently ‘published‘, that the renowned global securities dealer ‘1pool Ltd.’ and its chief executive officer ‘Patrick Brunner’ must pay a sum of $990k for illegal transactions in Bitcoins [BTC] with the U.S. based customers.
The Marshall Islands-based startup, provided BTC-funded security-based swaps, and its owner have been penalised for illicitly offering BTC-margined retail commodity ‘transactions‘ to United States based investors. Moreover, the CFTC states that 1pool Ltd. did not register as a futures commission merchandiser and failed to comply with the specified AML [Anti-Money Laundering] procedures.
The CFTC fined a civil penalty of $175k whereas conjointly obliging 1pool Ltd. to reimburse $246k of gains. Moreover, the corporate should return over 93 Bitcoins [BTC], valued by the CFTC at around $570k to all known Unites States based customers.
James McDonald – CFTC’s Director of enforcement has moreover warned intermediaries that the watchdog can hold them responsibly just in case they fail to comply with licensing necessities and United States trading policies.
During the investigation an anonymous FBI agent purchased security-based swaps on the Marshall-based platform from the Unite States., however he failed to comply with the discretionary investment thresholds needed by the U.S. securities laws. As per ‘SEC‘, the users can conjointly open accounts on the platform with their email address and a user name solely, without providing any extra information, that doesn’t just comply with United States User identification laws.
The two parallel actions were filed by CFTC and SEC earlier in Sept. last year. The chairman of CFTC namely ‘Christopher Giancarlo’ ‘added‘ that the CFTC charged the portion of the activity involving derivatives, the SEC charged the portion concerning equities, along with the Department of Justice and thereby ‘FBI‘ secured an order to seize platform’s web-site and ultimately shut it down.