1Broker, a platform enabling users to purchase financial derivatives with Bitcoin, has settled two lawsuits with the SEC & CFTC, the firm announced on Tuesday.
Last September, the two government agencies charged 1Broker along with its CEO Patrick Brunner with selling security-based swaps to U.S. and international investors without meeting the "discretionary investment thresholds required by the federal securities laws." The SEC claimed 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 has not admitted to or denied the allegations. However, the firm will begin processing bitcoin refund requests for its customers that had bitcoins locked up on its platform for the rest of 2019. 1Broker also confirms that "the brand 1Broker will definitely not return," adding that the firm cannot predict "whether we will be able to bring back the services we offered."