The U.S. Securities and Exchange Commission SEC has filed charges against international securities dealer ‘1pool Ltd.’,that were providing Bitcoin-funded security-based swaps,in line withSEC’s recent announcement.
According to a recent announcement by the SEC, this case involves between the Marshall Islands-based corporation named ‘1pool Ltd.’,thatoffers crypto related services and operative under the website named ’1broker.com, and its Austria-basedCEO ‘Patrick Brunner’. Thecase filedalleges that the partiesbreachedfederal securities laws inreference tosecurity-based swapsbackedwith Bitcoin [BTC].
Thelawsuitwas filedwithin theU.S. District Court for the District of Columbia and seeks permanent injunctions, interests and penalties. The SEC states that theCommodityFuturesTradingCommission [CFTC] has filed its own charges against 1pool Ltdin a veryparallel action.
According to thecase filed, anagentwith Federal Bureau of Investigation [FBI], actingconfidentially purchased security-based swaps from the 1broker’s platform in the United Stated,althoughhefailed tocomplywith the discretionary investment thresholdsneededby the federal securities laws. The SECadditionallyadds that userswere able toopen accounts on the platform with their email address and a user namesolely,while notproviding any other extrainfo.
The SEC also alleges that Brunner and 1brokerdid nottransactits security-based swaps ona standard exchange registeredwithin theU.S.,alsoas properly register as a security-based swaps dealer.
The Director of the SEC’sForthRegionalOffice ‘Shamoil T. Shipchandler’added:
“Internationalfirmsthatinteractwith United States investors cannot circumvent compliance with the federal securities laws byemployingcryptocurrencies.”
Earlier this week, the SECrevealedthat it’sseeking sanctions against thepeoplebehind the allegedlydishonorableICO referred as‘PlexCoin’. The partiesaresuspectedof “misappropriating”usersfunds that were “illegally” raisedin a verydishonorable, deceptive, and unregistered securitiesoffering.
Even earlier this month, the SEC issued aceaseandabstainorder and a $200,000 USD fine to CryptoAssetManagement [CAM] and its founder Timothy Enneking. The SEC order says that CAM “misrepresented” itselfquoting itself as the“first regulated cryptoAssetfundwithin theUnited States,” and illegally raised $3.6 Mln fromseveralinvestors in the previous year of 2017,adding its asset’s worth to more than $35 Mln.