The U.S. Securities and Exchange Commission (SEC) has charged Cumberland DRW LLC, a Chicago-based firm, for operating as an unregistered dealer in over $2 billion of crypto assets classified as securities. The SEC claims that Cumberland violated federal securities laws by failing to register, raising concerns over investor protection. The charges seek injunctive relief and penalties.
SEC Charges Cumberland DRW for Unregistered Crypto Securities Dealings
The U.S. Securities and Exchange Commission (SEC) charged Cumberland DRW LLC, a Chicago-based firm, on Thursday for “operating as an unregistered dealer in more than $2 billion of crypto assets offered and sold as securities.” The regulator claims Cumberland violated federal securities laws by dealing in significant crypto asset transactions without registering as required, putting investor protections at risk.
According to the SEC’s complaint, Cumberland has engaged in buying and selling crypto assets classified as securities since at least March 2018 without proper registration. The company, which describes itself as a leading liquidity provider in the crypto market, operates continuously through phone transactions or its platform, Marea. The SEC further alleges that Cumberland’s trading activity includes transactions involving investment contracts on third-party crypto exchanges. Jorge G. Tenreiro, Acting Chief of the SEC’s Crypto Assets and Cyber Unit (CACU), stressed:
The federal securities laws require all dealers in all securities to register with the Commission, and those who operate in the crypto asset markets are no exception.
Moreover, the SEC noted: “Cumberland profited from its dealer activity in these assets without providing investors and the market with the important protections afforded by registration.”
Filed in U.S. District Court for the Northern District of Illinois, the SEC’s complaint charges Cumberland with violating Section 15(a) of the Securities Exchange Act of 1934. The complaint seeks permanent injunctive relief, disgorgement, prejudgment interest, and civil penalties.
What do you think about the SEC’s actions against Cumberland DRW for unregistered crypto asset dealings? Let us know in the comments section below.
SEC指控Cumberland DRW未经注册进行20亿美元的加密证券交易 