The FIX at 4 - Daily Market Recap 9/28/2018 Regulatory Crackdown in full swing


 Total News – Atlanta, GA 9/28/2018 - A busy day for Crypto regulators, the SEC filed charges against Crypto broker 1pool LTD / 1broker:

Washington D.C., Sept. 27, 2018 — The Securities and Exchange Commission today filed charges against an international securities dealer and its Austria-based CEO for allegedly violating the federal securities laws in connection with security-based swaps funded with bitcoins. According to the SEC's complaint, 1pool Ltd. a/k/a 1Broker, registered in the Republic of the Marshall Islands, and its CEO Patrick Brunner solicited investors from the United States and around the world to buy and sell security-based swaps. Investors could open accounts by simply providing an email address and a user name – no additional information was required – and could only fund their account using bitcoins. The SEC alleges that a Special Agent with the Federal Bureau of Investigation, acting in an undercover capacity, successfully purchased several security-based swaps on 1Broker's platform from the U.S. despite not meeting the discretionary investment thresholds required by the federal securities laws. The SEC also alleges that Brunner and 1Broker failed to transact its security-based swaps on a registered national exchange, and failed to properly register as a security-based swaps dealer.

On the same day, WSJ published an excellent in depth analysis article on how money disappears into the Crypto black hole:

A Wall Street Journal investigation identified nearly $90 million in suspected criminal proceeds that flowed through such intermediaries over two years. Most operate beyond the reach of U.S. authorities, with unidentified owners and addresses in places such as Eastern Europe and China. Not ShapeShift, the largest recipient of the funds with a U.S. presence. The company is officially registered in loosely regulated Switzerland, but it is run out of a 1980s-era office building in a Denver neighborhood packed with tech companies and marijuana entrepreneurs. ShapeShift's founder and chief executive, Erik Voorhees, along with its chief operating officer and its marketing chief, all live in the Denver area.

Finally, the Crypto onion is being peeled back which as always, can be a good thing. Because at the moment, while the libertarians and criminals enjoy Bitcoin's 'anonymity' traders and investors are struggling to remain in the new asset class due to lack of counter-party confidence, poor execution quality, and lack of rules and standardization. -jg

Deal of the day - Get Crypto Hardware and other cools stuff at Bloc10's Online Shop.

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