1broker, has been taken down by the United States Security and Exchange Commission (SEC)
Bilthoven, Netherlands – September 28th, 2018
One of the brokers we had initially, 1broker, has been taken down by the United States Security and Exchange Commission (SEC). SEC announced that it had filed charges against 1pool Ltd, ( also known as 1broker) and against Patrick Brunner its CEO, for alleged violation of federal laws through a bitcoin-based security swap deal to both investors in the U.S and abroad without going through a “ proper discretionary investment thresholds”. According to SEC, 1broker was not registered as a “security-based swaps dealer”.
Director of SEC in Forth Worth, Shamoil Shipchandler, said that SEC has a responsibility to “protect U.S investors across a wide variety of platforms, regardless of the type of currency used in their transactions”. The FBI had reported that they had seized the 1broker domain, alleging that they had violated money laundering and wire fraud laws.
This is an unfortunate and unforeseen event. 1broker has been in existence for about 6 years. They had such a great reputation and were known to provide amazing services to their customers. They had always kept their promises.
Apparently, 1broker didn’t have a good anti money laundry law (AML). And Marshall Island where they operated from wasn’t regulated in the first place. That was rather unfortunate as SEC had to take them down. And the standard practice in America is to first suspend them and ask questions later.
Twitter account 1broker
1broker said on their Twitter handle that all funds are secured and that they have more than enough stocks to pay everybody. They are currently waiting for the SEC to see what steps to take. As you may already know, crypto is highly volatile and many view it as a risky investment. 1broker is, by no means, an exception. This should serve as a lesson and a warning because in crypto KYC is not done as a mandatory exercise . This is set to change soon as AML requires companies to make themselves known.
CFD brokers are permitted in most countries outside of the USA. Verified Crypto Traders is working on their own copy and trade bot. Soon, if all works according to plan, we will release this as an upgrade for Bitmex and Binance trades.