SEC, CFTC Hits 1Broker Crypto Platform With Charges — Investors Worried

American Regulators Strikes 1Broker Crypto Platform With Legal Charges, Website Seized

On Wednesday afternoon, many investors in this industry were caught off-guard, as the American Securities And Exchange Commission (SEC), who has begun to take a growing role in the crypto asset space, revealed that it had charged 1pool Ltd, known as 1Broker to cryptocurrency investors.

Per an official release from the heavy-handed regulatory body, the SEC has charged the startup, along with its Austria-based CEO for “allegedly violating the federal securities laws in connection with security-based swaps funded with bitcoins.”

Elaborating on the reasons behind the charges, the SEC’s release explained that Patrick Brunner had allowed American investors to purchase and sell security-based swaps without “meeting the discretionary investment thresholds required by the federal securities law.” Moreover, it was also noted that the SEC also believes that the platform was fraudulently issuing the…