The broker is charged for fraudulent securities swaps.
Several official authorities including the SEC, CFTC and FBI have taken action against a securities broker for breaching laws in connection with swaps funded by bitcoin.
The SEC stated that it had filed a suit against 1Broker andits CEO for trading security swaps to investors without complying with investment thresholds under the federal securities law. The Commission declared that 1Broker was illegally issuing swaps although it was not a registered swaps dealer. According to the SEC’s representative, they should protect American investors on any currency platform and monitor the compliance with the federal securities laws. The Commission is seeking injunctions and against the broker. 1Broker already stated that they were ready to resolve the dispute with the SEC.
The CFTC also submitted a similar suit against the company for illegal transactions without registering as a FCM. Such companies are required to be registered as FCM to carry out activity related to handling of customer accounts to implement necessary supervisory systems. The FBI blocked 1Broker.com after the U.S. District Court admitted the broker’s fault.