US SEC Files Charges Against 1Broker Dealer and CEO For Violating US Laws on Bitcoin
On Thursday, the U.S. Securities and Exchange Commission (SEC) announced via a press release that it has filed charges against an Austria-based securities dealer and CEO for allegedly violating US laws linked to security-based swaps funded with Bitcoin.
The complaint was filed in the U.S. District Court for the District of Columbia and seeks permanent injunctions, disgorgement plus interest, and penalties.
The securities dealer, 1Broker, and its CEO Patrick Brunner solicited US investors and others from around the world to buy and sell security-based swaps, the release said citing the SEC’s complaint.
According to SEC “Special Agent with the Federal Bureau of Investigation, acting in an undercover capacity, successfully purchased several security-based swaps on 1Broker’s platform from the U.S. despite not meeting the discretionary investment thresholds required by the federal securities laws.” The SEC also claims Brunner failed to register 1Broker as a security-based swaps dealer.
Shamoil T. Shipchandler, Director of the SEC’s Fort Worth Regional Office commented:
“International companies that transact with U.S. investors cannot circumvent compliance with the federal securities laws by using cryptocurrency.”
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