US Regulatory Body Accuses Securities Dealer Of Law Violation
The US Securities and Exchange Commission (SEC) brought charges against 1pool Ltd., a corporation which was offering security swaps funded with bitcoin. The regulatory body claims that the company infringed a great number of the US federal laws, in accordance with the information on the SEC official website.
The complaint was addressed to the corporation and directly to its head, Patrick Brunner, who is currently residing in Austria. Incorporated in the Republic of the Marshall Islands, 1pool Ltd. offered digital currency services through a platform 1broker.com. The FBI has already blocked the website and accused the company of money laundering, digital fraud and absence of the required registration.
In particular, the SEC claims that the firm sold assets to venture capitalists from the US and other countries and didn’t comply with necessary laws, regulations and policies. To open an account, it was necessary to provide just an email address and a user name. The SEC notes that clients could purchase securities only in bitcoins.
An undercover FBI special agent, while being on the territory of the US, reportedly acquired positions on 1broker. The procedure failed to comply with the discretionary norms established by the US laws, and the platform was not licensed to conduct transactions on a conventional exchange registered in the US.
The SEC representative Shamoil Shipchandler posited that foreign organizations which operate with US traders cannot sidestep the requirements of US securities laws by making use of a cryptocurrency. He added that the SEC guarantees protection to investors on all platforms irrespective of the type of assets used during the operation.
Previously, Russian regulators exposed a large-scale pyramid scheme involving crypto investments.