After an exciting entrance to the exchange scene, the 1broker platform has come to a grinding halt after the FBI shut down its domain amid an SEC investigation.
1broker allowed traders to use Bitcoin for forex trading, U.S. stock market trading, and leveraged positioning.
1Broker Down And Under SEC Investigation
Many crypto enthusiasts were excited when 1Broker decided to venture into the world of crypto futures products. The company was one of the first to provide such trading services and, since its launch, has enjoyed a fair share of success.
According to the SEC in collaboration with the USDC for the District of Columbia, information found on the website means the company is facing charges of wire fraud, money laundry, operating an unregistered dealer of securities and operating an unregistered futures commission merchant.
The problem lies in the company’s registration in the Marshall Islands, yet the CEO sought investment from clients that live in the US by selling security-based swaps. According to the SEC, there was no thorough KYC process when it came to opening accounts.
Now as it stands, the SEC is likely to seek a permanent injunction against the company and the CEO. It could spell the end for the platform although it remains to be seen how things will play out. Already there are rumors that the CFTC is also preparing to file similar charges against the company and this is not good for the website.
So far no one seems to have a clue as to what will happen to the money that is owed to clients by the company.
Now we have to wait and see what happens as the SEC continues with its tough stance on all crypto related businesses.
Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology