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The U.S. Securities and Exchange Commission (SEC) has charged Chicago-based Cumberland DRW LLC with operating as an unregistered dealer in the crypto asset market.
The SEC alleges that the company traded more than $2 billion in crypto assets, which were offered and sold as securities, without proper registration. The complaint claims that Cumberland violated federal securities laws designed to protect investors.
US SEC Charges Cumberland DRW
According to the US SEC’s complaint, Cumberland has been acting as an unregistered dealer since at least March 2018. The company is accused of buying and selling crypto assets classified as securities for its own accounts, as part of its regular business operations.
The SEC further alleges that Cumberland publicly presents itself as “one of the world’s leading liquidity providers” in crypto markets, conducting trading 24/7 through telephone and its proprietary online trading platform, Marea.
The SEC states that Cumberland regularly trades crypto assets, which are considered investment contracts, on third-party exchanges. This activity, the complaint alleges, falls within the definition of a securities dealer, and Cumberland’s failure to register as such violates Section 15(a) of the Securities Exchange Act of 1934.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor's degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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