1Broker, a BTC futures trading firm, announced that it would be reopening withdrawals as of Thursday. The announcement comes several weeks after the firm was accused of acting as an unregistered security-based swap dealer, as well as for allegedly violating money-laundering and wire fraud laws.
1Broker started having issues when the U. S. Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC) and the Federal Bureau of Investigation (FBI) filed charges in the U.S. District Court for the District of Columbia against its CEO, Patrick Brunner, and its parent company, 1Pool, for not complying with the law. According to reports, an agent went undercover and made a few transactions on the platform, in violation with established regulations, including proper Know Your Customer processes as stated by the law.
1Broker reopened its platform in a read-only mode earlier this month. During this time, the platform announced that they are seeking legal counsel to help them work out the issues and to resume operations.
Many of its clients are happy with the latest announcement from 1Broker. Initially, when the domain was seized, the trading platform claimed to have enough funds to cover all withdrawals request by the customers and claimed it was waiting on approval from the authorities in order to process the transactions. Customers were allowed to start withdrawing at 12:00 UTC on Oct. 11.
We will start processing withdrawals tomorrow at 12:00 (UTC). Thanks for your patience in the past days!
— 1Broker (@1Brokerio) October 10, 2018
Authorities are still seeking a permanent injunction against Brunner and 1Pool. They are also seeking to have the two pay monetary penalties.
1Broker, in its announcement, did not state if and when they will reactivate their operations and it is unclear when the authorities will allow the company to resume them. According to 1Pool, the platform has been running smooth and has created a respected working relationship with its customers. It stated that the company has been complying with established laws and hopes to clear the misunderstanding soon.
Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
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Cryptocurrency futures broker 1Broker was recently shut down by US regulators. Both the Securities and Exchange Commission and the Commodity Futures Trading Commission (CFTC) went after the company for allowing US investors to trade on the platform in violation of current laws. The closure of the company left an unknown number of US investors in a bad position, as they haven’t had access to their funds. 1Broker is currently working to resolve the issue and has announced that it will allow US customers to have a “window” into its world while the company seeks clarity.
The company hopes to have a “read-only” version of the site up and running by today. This will allow users to see their balances and transaction histories, but not allow them to make any trades or withdrawals.
1Broker asserted, “Currently, our top priority is to allow customer withdrawals. 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.”
1Broker is run by Marshall Islands-based 1Pool. All information related to the ban is being channeled through the 1Pool.ltd website, since 1Broker’s site has been seized by regulators. 1Pool explains on its site, “On September 28th 2018, our domain 1broker.com was closed by the United States Securities and Exchange Commission (SEC). This means that the trading panel is not accessible anymore - funds, servers and databases are not affected. Currently, our top priority is to allow customer withdrawals. 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. During this whole process, we are supported by our lawyers and we will regularly post updates here. Please note that all emails sent to @1broker.com addresses are not received by us - you can use [email protected] to contact us. All updates regarding the activation of withdrawals will be posted here - please do not contact us for questions related to this topic. Please expect delays of up to 5 days until we respond, due to the high amount of inquiries.”
In an email to CoinDesk, 1Pool CEO Patrick Brunner stated that the company is working as quickly as possible to be able to allow users to withdraw their funds. He added, “Unfortunately, such matters take some time – from our point of view, we are ready to process withdrawals right now.”
Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
The post 1Broker looking to get back into the game after US ban appeared first on Coingeek.
