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Bitcoin [BTC]: 1pool Ltd and CEO fined $990,000 by CFTC for illegal BTC transactions

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Bitcoin [BTC]: 1pool Ltd and CEO fined $990,000 by CFTC for illegal-BTC transactions
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The Commodity Futures and Trading Commission (CFTC) announced via a press release, that 1pool Ltd and its CEO and Founder, Patrick Brunner were fined $990,000 for engaging in illegal Bitcoin [BTC] transactions with customers based in the United States.

As per the federal body, the Marshall Islands-based international securities dealer and platform offered, “retail commodity transactions that were margined in bitcoin.” 1pool also wasn’t registered as a Futures Commission merchant (FCM), and did not meet the required anti-money laundering norms that were required.

A civil monetary penalty to the tune of $175,000 has to be paid by the platform and Brunner, in addition to a disgorgement of $246,000. Furthermore, the order also provides customers of the platform some relief, with the BTC held by them being compensated for.

The CFTC ordered Brunner and 1pool to pay their US customers the BTC held by the trading platform via their customer accounts. 1pool has to pay 93 Bitcoins worth $570,000 to the customers, coming up to a sum-total of $990,000.

James McDonald, the Director of Enforcement at the CFTC stated that not just non-compliant companies, but platforms that act as mediums will also see legal action taken against them.

He stated,

“Intermediaries should take notice that they will be held accountable by the CFTC for failing to comply with registration requirements and failing to implement policies and procedures that are crucial in protecting U.S. customers and our markets. Through the Division’s Bank Secrecy Task Force.”

The CFTC added that this prosecution was rooted in a September 2018 complaint against 1pool lodged by the Securities and Exchange Commission (SEC) and the Federal Bureau of Investigation (FBI). According to the federal bodies, 1pool was behind 1broker.com, which violated federal law while engaging in security-based swaps funding via Bitcoin.



Additionally, the platform not only did not transact their swaps through a US-registered exchange, but it did not register as a security swaps dealer either. The SEC further stated that users of the platform were able to set up an account with just a username and an email address. Doing so, without providing any identifiable document, is illegal under customer identification regulations in the United States.

Several federal and state bodies within the United States have been ramping up their efforts to catch crypto-scammers. In May 2018, regulatory authorities in USA and Canada joined forces to crack down on ICO frauds as part of “Operation Crypto Sweep.” The state of Colorado took this operation by the scruff of its neck, tabling cease-and-desist orders against several initial coin offerings [ICOs] in November 2018 alone.





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Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more

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Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more

Daily Crypto News – May 25

1) Bitcoin Wallet receives part of 5,000 BTC: A recent Whale Alert highlighted a transaction on May 24, where a large sum of Bitcoin [BTC] exchanged hands between two anonymous wallets. According to the alert the transaction took place at 22:13:23 + 1 minutes and 5,000.00001092 BTC was transferred from an unknown wallet, with address 19SiCYaYKZh9A8HUjuh14eg5wtYzKxiFbB, to another unknown wallet with address 14GcjGjxwadzcpmq9EG3KUgTKATjurbnWt.

Read more at https://bit.ly/2VRQwb0

2) Bitwise Report 2.0: Bitcoin [BTC] futures continues growth: On a month-on-month basis, Bitcoin Futures saw a massive bump in April trading at an average of 10,000 contracts daily, peaking on April 4, with over 22,000 contracts traded. To put that number in perspective, in March 2019, the average contracts traded was less than 4,000. Despite the high standards set in April, the average daily contracts traded in May, with 25 days gone has exceeded 14,000 and still looks to grow, given the price performance of Bitcoin.

Read more at https://bit.ly/2W40sTR

3) Craig Wright on private keys: Craig S Wright has, for years, claimed he is the true creator of Bitcoin [BTC] without providing a shred of evidence to support the same. With the crypto-community levelling, Wright could prove his worth by sending BTC from Satoshi Nakamoto’s touted wallet containing around 980,000 BTCs, the BSV man in a twisted cause and effect situation, stated he will “sign” into his wallet only when he proves he is the creator.

Read more at https://bit.ly/2X6fdlw

4) Tether’s [USDT] market cap hits ATH: Tether and Bitfinex are being closely scrutinized now more than ever due to the NYAG’s lawsuit; however, the scrutiny doesn’t seem to have affected Tether as the market cap of USDT has increased by over $100 million in approximately 70 days.

Read more at https://bit.ly/2McaTjE

5) Tether volume shift: Another controversial topic in the cryptocurrency industry was the issue of fake transaction volumes on many of the popular cryptocurrency exchanges. The magnitude of the topic was so large that even Changpeng Zhao, the Chief Executive Officer [CEO] of Binance had raised red flags. This topic and Tether as a whole received another twist when Larry Cermack, the Director of Research at The Block, pointed out a few parameters when it came to the said volume.

Read more at https://bit.ly/2wmk4mJ

6) Bitfinex’s LEO tokens listed on Delta Exchange: Bitfinex’s Leo tokens faced quite a lot of criticism when they were announced, due to the missing $850 million funds from Bitfinex. The private investment round by Bitfinex also faced a lot of heat from the media. However, in a recent development, Leo tokens are being listed on various exchanges for trading.

Read more at https://bit.ly/2HUEnNB



7) Robinhood en-route a projected valuation of $7 billion: Robinhood, the California-based cryptocurrency exchange made headlines recently when a source close to the organization revealed that it was on the verge of closing their latest round of funding at a valuation of a whopping $7 billion – $8 billion. Sources even claimed that the current round of funding could act as a precursor to an even bigger round of funding, which would pit Robinhood with the bigwigs like Coinbase and Binance.

Read more at https://bit.ly/2W64KKj





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