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 with SEC’s recent announcement.
According to a recent announcement by the SEC, this case involves between the Marshall Islands-based corporation named ‘1pool Ltd.’, that offers crypto related services and operative under the website named ’1broker.com, and its Austria-based CEO ‘Patrick Brunner’. The case filed alleges that the parties breached federal securities laws in reference to security-based swaps backed with Bitcoin [BTC].
The lawsuit was filed within the U.S. District Court for the District of Columbia and seeks permanent injunctions, interests and penalties. The SEC states that the Commodity Futures Trading Commission [CFTC] has filed its own charges against 1pool Ltd in a very parallel action.
According to the case filed, an agent with Federal Bureau of Investigation [FBI], acting confidentially purchased security-based swaps from the 1broker’s platform in the United Stated, although he failed to comply with the discretionary investment thresholds needed by the federal securities laws. The SEC additionally adds that users were able to open accounts on the platform with their email address and a user name solely, while not providing any other extra info.
The SEC also alleges that Brunner and 1broker did not transact its security-based swaps on a standard exchange registered within the U.S., also as properly register as a security-based swaps dealer.
The Director of the SEC’s Forth Regional Office ‘Shamoil T. Shipchandler’ added:
“International firms that interact with United States investors cannot circumvent compliance with the federal securities laws by employing cryptocurrencies.”
Earlier this week, the SEC revealed that it’s seeking sanctions against the people behind the allegedly dishonorable ICO referred as ‘PlexCoin’. The parties are suspected of “misappropriating” users funds that were “illegally” raised in a very dishonorable, deceptive, and unregistered securities offering.
Even earlier this month, the SEC issued a cease and abstain order and a $200,000 USD fine to Crypto Asset Management [CAM] and its founder Timothy Enneking. The SEC order says that CAM “misrepresented” itself quoting itself as the “first regulated crypto Asset fund within the United States,” and illegally raised $3.6 Mln from several investors in the previous year of 2017, adding its asset’s worth to more than $35 Mln.