Recently SEC had accused 1Broker of allegedly violating the federal securities laws. The cryptocurrency platform 1Broker released an official post which stated that they would resume withdrawals for US customers as soon as the SEC approves it. Additionally, 1Broker’s CEO, Patrick Brunner made investors from America and the rest of the world purchase and sell security-based swaps with Bitcoin [BTCs].
The problem with the security-based swaps was that investors were supposed to fund their accounts only with Bitcoin [BTC] and had to create accounts only with an email address and username, the report stated. The SEC’s investigation stated that Burner and 1Broker had not met the requirements to legally trade security-based swaps on international or national domains.
According to 1Broker’s official statement, the funds, servers, and databases were not affected and their main priority was to immediately release the funds of its customers. Furthermore, they stated that withdrawals would be allowed only after the authorities permitted them to do so.
The statement further stated, SEC claimed that the Bitcoin-based contracts offered by them were violating the US security laws but according to 1Broker, customers had to verify and ensure that the services used by them were completely legal in their country of residence.
Director of the SEC’s Fort Worth Regional Office, Shamoil T. Shipchandler stated that the SEC’s main aim was to protect US investors in all the platforms regardless of the type of currencies used in their transactions. Shipchandler stated that:
“International companies that transact with U.S. investors cannot circumvent compliance with the federal securities laws by using cryptocurrency”
According to 1Broker’s official Twitter handle, the fluctuation in market prices would not affect its customers and all open positions would remain closed. Furthermore, their main priority was to get the SEC’s approval to process customer withdrawal requests through an alternative domain.
Michael an investor in 1Broker posted on Twitter:
“whats the problem with allowing international users to withdraw their money? The sec does not have any authority over my money”
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