SEC and CFTC charges 1Broker for violating U.S. securities law

The two government agencies charged 1Broker, along with its CEO Patrick Brunner, for selling security-based swaps to U.S. and international investors without meeting the "discretionary investment thresholds required by the federal securities laws." Furthermore, the SEC claims that 1Broker failed to "transact its security-based swaps on a registered national exchange, and failed to properly register as a security-based swaps dealer."

1Broker is a platform that enables users to purchase financial derivatives with Bitcoin. The underlying contracts traded on 1Broker's platform are called CFDs. CFDs enables 1Broker to pick it derivatives directly to the underlying markets that are being traded, such as commodity, stock, index, and forex markets. (Source: SEC)