Category Archives: 1Broker

Auto Added by WPeMatico

1Broker to Start Processing Withdrawals Following SEC Shutdown

1Broker has announced that it will begin processing customer withdrawals on 11 October 2018, a surprising turn of events considering that they were shut down by the United States Securities and Exchange Commission (SEC), Federal Bureau of Investigations (FBI) and the Commodity Futures Trading Commission (CFTC).

We will start processing withdrawals tomorrow at 12:00 (UTC). Thanks for your patience in the past days!

— 1Broker (@1Brokerio) October 10, 2018

1Broker was a popular trading platform that launched in 2012. Due to its relatively early start, it had a policy of allowing users to be anonymous. This was at first legal but new regulations have made this illegal if doing business within the United States, since know your customer (KYC) and anti-money laundering (AML) policies are required under the law. An undercover FBI agent bought Bitcoin investment products on 1Broker from within the United States, since they require nothing more than an email to signup.

The FBI and SEC coordinated to shut down 1Broker on 27 September, claiming that it was selling security-based swaps and failed to register as a dealer, or conduct its business on an officially registered exchange. There was outrage in the crypto community since it appeared customer’s funds were to be held indefinitely, which would harm up to 50,000 users on the platform, the opposite of the SEC’s mission of protecting investors. Additionally, 1Broker is based in the Marshall Islands, a sovereign nation outside of the United States, and it seemed like a major overstepping of bounds for the US to seize 1Broker.

Now the situation has taken a positive and perhaps unexpected turn, and customers will be getting their money back. 1Broker’s domain was initially completely seized but opened in read-only mode soon after the incident. Now users will be able to go on the website and withdraw funds starting on 11 October.

The SEC’s action against 1Broker is just one of many regulatory enforcement actions in the crypto space recently. The United States Congress has asked the SEC to lessen the hostile environment in the crypto space by clarifying crypto regulations and making them more favorable towards crypto business.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post 1Broker to Start Processing Withdrawals Following SEC Shutdown appeared first on BitcoinNews.com.

1Broker to Launch ”Read-Only” Version of Bitcoin Futures After SEC Charges

After the US Securities and Exchange Commission (SEC) filed charges against Bitcoin futures firm 1Broker last week, the website now has plans to re-launch on a ”read-only” basis.

At the time of the SEC filing charges, the US Federal Bureau of Investigation (FBI) seized the website, with customers left without access to their funds. A slight relief came Tuesday in the way of 1Broker’s lawyers recommending that the brokerage website can go back online in a read-only format, meaning that customers can view balances and transaction history but cannot pursue any active trades or retrieve funds.

1Broker has been adamant that customers funds remain safe despite the legal action taken against them, saying that its top priority is allowing customers to withdraw from their accounts.

A post on parent company 1Pool’s website outlining the current situation of the company details its priority to protect customers and retrieving their funds: ”The company holds enough funds to cover all withdrawal requests, of course. Before we can take the required steps to do that, we have to seek permission from the authorities.” Balances will have to be paid out via an alternative domain also, its message reads.

CEO of 1Broker Patrick Brunner spoke to CoinDesk on the subject, saying that the company is asking for patience while the process transpires. “Unfortunately, such matters take some time – from our point of view, we are ready to process withdrawals right now,” Brunner told CoinDesk.

The read-only version of the website is expected to go live today on Wednesday.

The charges

The SEC claims that 1Broker violated federal law by allowing US traders to exchange on its platform.

An FBI agent created an account on 1Broker and made a purchase of what they claim are classified as securities, for which the company does not hold the correct licenses from the SEC. The FBI cited an additional grievance in that 1Broker only required an email address and username to open an account – a lack of any know-your-customer compliance.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post 1Broker to Launch ”Read-Only” Version of Bitcoin Futures After SEC Charges appeared first on BitcoinNews.com.

1Broker Shutdown by SEC as Users Lose Access to Funds

On 27 September 2018, the United States Securities and Exchange Commission (SEC) filed charges against 1Broker, a popular crypto investment site headquartered in the Marshall Islands. Its website was seized by the Federal Bureau of Investigations (FBI), leaving no way for customers to access funds.

An FBI agent purchased products on 1Broker that could be considered security-based swaps, and found that only an email address and username was needed to open an account. 1Broker says that it had a statement in its terms of service that users were responsible for making sure it was legal to buy products on 1Broker, but the SEC and FBI clearly disagrees. The SEC says 1Broker failed to register as a security-based swap dealer, and failed to transact the security-based swaps on a registered exchange.

Criticism has been that it is counter-intuitive for the SEC to perform an action like this, which hurts the up to 50,000 traders and investors that use 1Broker, since the goal of the SEC is to protect investors. It is important to note that 1Broker is not even based in the United States, it is in the Marshall Islands which is a sovereign nation.

A simple fix for this would have been to ban US IP addresses. Optimally, 1Broker should have verified customer identities to prevent US customers from using its platform. 1Broker launched in 2012, during a time when regulations were lacking, and it stuck with a policy of practically total anonymity for customers up to the present day.

Since 1Broker customers were able to maintain anonymity, receiving funds back may be a lengthy process at best, and impossible at worst. The SEC, FBI, and possibly the Commodities Futures Trading Commission (CFTC) who is also filing charges, are in charge of the refund process. This will likely lead to demands for full verification of customers before refunds are processed. Most customers will likely be unable to comply for multiple reasons, such as tax liability, maintaining anonymity, or using 1Broker in a country like the United States where it is considered illegal.

Therefore, this is not only a shutdown of 1Broker but will end up being a total loss for most of its users. This is the sort of treatment users usually receive on darknet markets like the Silk Road, where drugs and other illegal goods are being transacted. It bears consideration that traders and investors using a platform with a strong reputation should lose their investment due to government action, especially the action of a foreign government.

The reality is that 1Broker posed no threat or risk to investors, and the SEC, FBI, and CFTC appear to be the ones damaging investors in this case, which is the opposite of their mandated mission to protect investors.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post 1Broker Shutdown by SEC as Users Lose Access to Funds appeared first on BitcoinNews.com.