US Securities and Exchange Commission announced on Thursday Cumberland has sued DRW, a Chicago-based crypto trading company, with various securities payments.
In an announcement, the SEC said Cumberland operates as an unregistered dealer, handling more than $2 billion worth of cryptocurrencies.
The complaint alleges that Cumberland “traded crypto assets that were offered and sold as investment contracts on third-party crypto asset exchanges.”
The SEC complaint lists five assets that the regulator considers securities, including: Solana, Polygon, Cosmos, AlgorandAnd Filecoin. However, the complaint indicates that such assets are an “unexhausted” list.
“Despite repeated objections by the industry that the sale of crypto-assets is similar to the sale of commodities, our complaint is that Cumberland, the relevant issuers and actual investors treat the supply and sale of crypto-assets as investments in this matter,” said Acting Chief of the SEC's Crypto-Assets and Cyber Unit (CACU). Jorge G.
“Cumberland profited from dealer activity in these properties without providing investors and the market with the important protections afforded by registration,” Tenrero added.
Cumberland did not immediately respond DecryptQuestions, however Posted A statement from Twitter (known as X) said the lawsuit “will have no impact on our business operations or assets.”
“We are ready to defend ourselves again,” he added. 2018 case Investment Firm with Commodity and Futures Trading Commission DRW They won.
Cumberland is the crypto trading subsidiary of Chicago-based DRW investment firm. It specializes in making institutional-sized markets in Bitcoin and other digital assets.
The SEC has hit several digital asset firms, including major US exchanges. Coinbase And Kraken-With charges for selling unregistered securities in the form of cryptocurrency.
But the approach has drawn the ire of those in the industry and some US politicians, who say the regulator and chairman Gary Gensler have adopted a “coercive regulation” approach to monitoring the industry.
Edited by Andrew Hayward.
Editor's note: This story has been updated after publication with additional details.
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