The United States Commodity Futures Trading Commission (CFTC) has announced Monday, March 11, that international securities dealer 1pool Ltd. and its CEO Patrick Brunner must pay a total of $990,000 for illicit Bitcoin (BTC) transactions with U.S. customers.
The Marshall Islands-based startup, which was offering BTC-funded security-based swaps, and its owner have been fined for illegally offering BTC-margined retail commodity transactions to U.S. investors. Moreover, the CFTC states that 1pool Ltd. failed to register as a futures commission merchant and did not comply with the required Anti-Money Laundering (AML) procedures.
The CFTC imposed a civil penalty of $175,000, while also obliging 1pool Ltd. to reimburse $246,000 of gains. Moreover, the company has to return approximately 93 BTC, valued by the CFTC at approximately $570,000, to all known U.S. customers.
CFTC Director of Enforcement James McDonald has additionally warned intermediaries that the watchdog will hold them accountable in case they fail to comply with licensing requirements and U.S. trading policies.