As of March 4th 2019, 1Broker announced the settlement of lawsuits from both the SEC and CFTC. All funds on the platform are said to be available for refund until the end of the year. The 1Broker brand, they say, will cease to exist.
Details of 1Broker Settling with the SEC Explained
1Broker is a Marshall Islands-registered company whose domain was seized by US authorities back in September 2018.
Though the FBI was the primary agency of enforcement, both the SEC and the CFTC claimed the enterprise allegedly violated federal securities laws.
On March 4th, 2019, 1Broker announced that it had settled all lawsuits filed against it, including those by the SEC and CFTC:
“We are pleased to let you know that we settled the two lawsuits without admitting or denying the factual allegations of their complaints on March 4th 2019.”
According to the original complaints, US-based investors could create accounts through the 1Broker platform with a mere email address.
1Broker states that US authorities went on to seize the 1Broker.com domain. Such a seizure, they claim, ultimately resulted in a significant disruption of the company’s trading platform which allowed for the purchase of investment derivates with bitcoins.
1Broker’s Refund Policy After the Domain Seizure Explained
During the seizure, 1Broker repeatedly told customers that funds stored on the platform were not at risk of being lost.
1Broker has now announced the ability for all funds to be fully reimbursed:
“All customers who requested withdrawals via the new domain 1broker.io have had their bitcoin refunded to them. We will continue to process refund requests at least until the end of 2019 – if you still have funds on the platform please withdraw them until then.”
In terms of the company’s future plans, 1Broker made it clear via twitter that their current brand will cease to operate:
“No, the brand 1Broker will definitely not return. Cannot predict yet, whether we will be able to bring back the services we offered.”
The company also claimed they will look for a “fresh start” by releasing a new project. A detailed announcement they say, is set to arrive at some point in the future.
The SEC’s actions against 1Broker exemplify just one facet of an ongoing campaign against the use of digital assets which violate federal securities laws.
The SEC has also targeted ICOs, exchanges, and even investment advisors.
Out of a concern for regulatory clarity, many companies in the blockchain space have turned to security tokens as a legal method of raising private capital.
What do you think of 1Broker settling all lawsuits with US regulatory authorities? Will the SEC continue it’s streak of increased regulatory enforcement? We want to know what you think in the comments section below.
Image courtesy of Medium.