US Authorities Impose Fine On Crypto Company 1pool Ltd
The US Commodity Futures Trading Commission (CFTC) imposed a penalty of $990,000 on the crypto company 1pool Ltd and its director Patrick Brunner, as follows from a press release.
The regulatory organization has accused the company located in the Marshall Islands of illegal BTC operations. 1pool Ltd was not duly registered as a futures commission merchant (FCM) and did not adhere to the rules of the AML procedure.
The company also violated federal laws and illegally implemented schemes for the sale of bitcoin swaps with characteristics of securities. Clients of 1pool Ltd are citizens of both the United States and other countries.
By its order, the CFTC imposed a civilian fine of $175,000. Besides, Brunner's company must return $246,000 of illegally obtained income, as well as repay 93 bitcoins to its customers with an approximate value of $570,000. In total, the fine will amount to almost $1 million.
Companies which are mediators in crypto operations should pay attention to the fact that the CFTC will hold them accountable for non-compliance with registration requirements and procedures related to the protection of customers and the financial market, James MacDonald, the agency spokesman, stated.
The CFTC expressed gratitude to the District of Columbia Prosecutor’s Office, the SEC, and the FBI staff for their help with the investigation.
As previously reported, the CFTC received answers from ErisX to questions related to the Ethereum technology.