NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Crypto Exchange Seized by SEC, Why Exchanges are Cautious in Adding Tokens

Nick Chong
Nick Chong
6 years ago
3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Although members of the US Securities and Exchange Commission (SEC) and Commodities and Futures Trading Commission (CFTC’) have recently stated that it would be in America’s best interest to give the crypto industry much-needed leeway, the two regulatory bodies have just cracked down on one of crypto’s very own.

The 1Broker Black Swan Event

On Wednesday afternoon, the SEC, one of the United States’ most influential government-backed agencies, revealed that it had formally charged crypto startup 1Broker for not complying with American laws. As per an official press release regarding the matter, 1Broker, a Marshall Islands-based crypto investment services provider, facilitates the sale of products that are in violation of multiple laws. The most notable violation being that 1Broker is allegedly issuing Bitcoin security-based swaps without any sign of holding the proper licenses or prerequisites.

SEC Fort Worth Director Shamoil T. Shipchandler, who was the individual that drove this case forward, made a statement in the aforementioned release, noting:

“The SEC protects U.S. investors across a variety of platforms, regardless of the type of currency used in their transactions. International companies that transact with U.S. investors cannot circumvent compliance with the federal securities laws by using cryptocurrency.”

Now, the SEC is seeking for 1Broker to be hit with “permanent injunctions, disgorgement plus interest, and penalties” through its filed complaint, which is targeted at regional courts in the District of Columbia, the jurisdiction of the U.S. capital Washington D.C.

It has become apparent that this was likely a coordinated strike from America’s regulatory bodies and agencies, as the CFTC also issued charges against 1Broker and its CEO that eerily mirror the SEC’s. Moreover, the FBI supposedly seized the 1Broker domain for a short period of time, as astutely pointed out by cryptocurrency analyst Alex Kruger.

This could happen to crypto exchanges offering trading of security tokens and security token derivatives. If $XRP were to be defined as a security it would jeopardize exchanges such as Bitmex. Binance is at risk regardless. Lots of security tokens there. pic.twitter.com/9uxLdtwGnF

— Alex Krüger (@krugermacro) September 27, 2018

Although the 1Broker landing page has since been recovered, the New York-based Argentinian commentator explained that 1Broker’s unfortunate demise could indicate that this industry is about to undergo a monumental bout of change. Kruger pointed out that any exchange offering support for tokens that may be deemed securities could have been subject to harsh regulatory backlash. XRP, for one, is seen as a security in the eyes of some, so the asset may put platforms like Binance, BitMEX, and Bitfinex at a great risk.

However, it isn’t as cut and dried as some would initially think, as the analyst explained that this case goes much deeper than just the trading of unregulated securities. Citing a fellow cryptocurrency commentator, he explained that the FBI also seized the 1Broker domain due to fears of money laundering and wire fraud, along with the firm willfully operating as an unregistered dealer of securities and a futures commision merchant.

Regardless, Kruger added that crypto exchanges, specifically ones that do not hold offices in the U.S., can still be shut down by regulators at any second, which may spark a “temporary black swan event,” potentially driving this industry into a short period of disbelief and shock. Ironically enough, he also pointed out that if Binance and BitMEX get shut down that US-based exchanges and OTC desks would suddenly dominate the market, which in his perspective would dramatically increase the odds of a Bitcoin ETF receiving a regulatory green light.

Temporary. The absence of Bitmex & Binance would result in US exchanges and OTC desks suddenly becoming markets of "significant size" => very high odds of ETF approval. And just like that bitcoin would become a dream asset rather than a libertarian panacea. Such irony.

— Alex Krüger (@krugermacro) September 27, 2018

It isn’t clear if the SEC’s move against 1Broker was a brutal show of force, but many have begun to believe that this regulatory action indicates that governmental agencies want crypto’s ducks to fall into a row, so to speak. So while some firms are open to playing with fire, some crypto startups, like the Luxembourg-based ShapeShift have found it advantageous to implement policies and systems that mitigate the risk of regulatory repercussions.

Featured Image From Shutterstock
Tweet123Share196ShareSend
Nick Chong
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

crypto ETF, sec, nieuwe crypto etf

SEC bereidt crypto ETF proces voor – nieuwe ETFs mogelijk binnen 75 dagen goedgekeurd

De SEC lijkt nieuwe regels te gaan introduceren die het goedkeuringsproces voor een nieuwe crypto ETF moeten simplificeren. De verwachting...

Lars Diederiksen 10 hours ago
XRP

2% Of All XRP Is In His Hands — But Who Is He?

A long‑time figure in the world of digital money and a noted XRP advocate stepped out of the shadows this...

Christian Encila 15 hours ago

Bitcoin Absorbs Strong Selling Pressure On Binance Derivatives – Breakout Ahead?

Bitcoin (BTC) has remained range-bound between $100,000 and $110,000 since May 7, aside from a few dips to as low...

Ash Tiwari 16 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Sei

Sei Network Unlocks Japan Market After Hitting $626M In TVL

Christian Encila 54 minutes ago
Elon Musk

Elon Musk Drops Epstein ‘Peanut’ Bomb — PNUT Coin Explodes 10%

Christian Encila 5 hours ago
Tether

Tether Secret Swiss Vault: The $8 Billion Gold Reserve Behind The Stablecoin

Ronaldo Marquez 9 hours ago

Premium Sponsors

Press Releases

  • 仮想通貨プレセール|次世代ビットコイン拡張プロジェクトが200万ドル目前、投資家が続々と参加中

    ...

    6 hours ago
  • 仮想通貨おすすめ|ビットコインが過去最高値に迫る中、ETFが70万トークンを保有

    ...

    6 hours ago
  • 新しい仮想通貨が160万ドルを調達──過剰な宣伝を避ける注目のミーム系ボット登場

    ...

    6 hours ago
  • 仮想通貨おすすめ|ビットコインが10万8,000ドル突破、2025年7月に注目の17銘柄

    ...

    6 hours ago
  • MEXC Launchpad Debuts PUMP Token with Exclusive 40%...

    6 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.