1Broker Settles Two Bitcoin Derivatives Lawsuits With Regulatory Agencies In The United States
1Broker Settles Two Lawsuits With Regulatory Agencies In The United States
According to a recent announcement made by 1Broker, they settled two lawsuits with the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). 1Broker is a company that enables users to purchase different financial derivatives using Bitcoin (BTC).
Both regulatory agencies charged 1Broker and the CEO of the company Patrick Brunner with selling a security token to the US and also international investors. However, the investors did not meet the “discretionary investment thresholds required by the federal securities laws.”
The company explained:
“We are pleased to let you know that we settled the two lawsuits without admitting or denying the factual allegations of their complaints on March 4th, 2019.”
According to The Block, the SEC explains that the fintech company transacts its security-based swaps on a registered notional exchange and it also was not able to register the firm as a security-based swaps dealer.
The SEC has been trying to increase its presence in the crypto and blockchain market. The agency has been going behind Initial Coin Offerings that did not comply with securities laws. Indeed, the SEC has already announced enforcement actions against several firms operating in the space.
Now, the firm will start processing Bitcoin refund requests for customers that had Bitcoins locked up on the platform. Moreover, 1Broker exchange explained that their brand “1Broker” will not return in the future. They also explain that they do not know whether they will be able to offer similar products to the ones offered in the past.
The company explained that they have been working on a new project for a few months and that the best way to keep is with a fresh start that will be announced in the coming weeks.
Countries have been trying to regulate the crypto and ICO market. Back in 2017 and the beginning of 2018, a large number of projects launched their ICOs. Nevertheless, there were several scam companies and fraudulent firms that launched their tokens and harmed investors.