Northern

Polygon

World Liberty Financial

Cosmos

<ul class="wp-block-list">
 <li>The SEC has sued Cumberland DRW LLC for trading over $2 billion in crypto assets without dealer registration.</li>
 <li>The SEC’s complaint names five assets as securities: SOL, POL, ATOM, ALGO, and FIL, noting that this is not an exhaustive list.</li>
</ul>
The U.S. Securities and Exchange Commission (SEC) has taken legal action against Chicago-based Cumberland DRW LLC, accusing the firm of operating as an unregistered dealer in cryptocurrency assets. <a href="https://thenewscrypto.com/tether-treasury-injects-246m-usdt-into-cumberland-after-2-month-pause/" target="_blank" rel="noopener noreferrer nofollow">Cumberland</a> allegedly handled over $2 billion worth of crypto assets, which the SEC considers securities, without registering as required by federal securities laws. The SEC’s lawsuit, filed in the Northern District of Illinois, claims Cumberland has been conducting this unregistered trading since at least March 2018.
Cumberland is a well-known liquidity provider in the crypto space. It is the digital asset arm of DRW Holdings, a firm founded in 1992, recognized for its expertise in derivatives trading. The SEC emphasized in the document that laws designed to protect investors apply to all securities dealers. This includes those dealing in crypto assets.
<h3 class="wp-block-heading" id="h-sec-labels-five-cryptos-as-securities-in-cumberland-case">&nbsp;SEC Labels Five Cryptos as Securities in Cumberland Case</h3>
According to the regulator, the firm operates Marea, a trading platform available 24/7. That allows over 1,500 high-net-worth individuals and organizations to trade crypto assets. This includes well-known participants in the crypto world.
Further, the SEC complaint identifies five assets it classifies as securities, including <a href="https://thenewscrypto.com/solanas-crossroads-analyzing-sols-consolidation-and-potential-breakout-scenarios/" target="_blank" rel="noopener noreferrer nofollow">Solana</a> (SOL), Polygon (POL), Cosmos (ATOM), Algorand (ALGO), and Filecoin (FIL). However, the complaint specifies that this is not an exhaustive list of such assets.
<div class="wp-block-image">
 <figure class="aligncenter size-large"><img decoding="async" width="1024" height="461" src="https://thenewscrypto.com/wp-content/uploads/2024/10/image-23-1024x461.png" alt="" class="wp-image-110500" srcset="https://thenewscrypto.com/wp-content/uploads/2024/10/image-23-1024x461.png 1024w, https://thenewscrypto.com/wp-content/uploads/2024/10/image-23-300x135.png 300w, https://thenewscrypto.com/wp-content/uploads/2024/10/image-23-768x346.png 768w, https://thenewscrypto.com/wp-content/uploads/2024/10/image-23.png 1068w" sizes="(max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">(Source: <a href="https://www.sec.gov/files/litigation/complaints/2024/comp-pr2024-168.pdf" target="_blank" rel="noopener noreferrer nofollow">The SEC</a>)
 </figcaption>
 </figure>
</div>
The SEC’s complaint accuses Cumberland of violating Section 15(a) of the Securities Exchange Act of 1934. That seeking penalties, including the return of ill-gotten gains, interest, and other financial penalties. In response, Cumberland stated that it had made sincere efforts to comply with SEC regulations and expressed frustration over the allegations.
However, this legal action marks another step in the SEC’s ongoing efforts to regulate the crypto market. Also, it aims to ensure companies follow proper registration procedures to protect investors.
Highlighted Crypto News Today
<a href="https://thenewscrypto.com/trumps-world-liberty-financial-to-raise-300m-via-new-token-sale/" target="_blank" rel="noopener noreferrer nofollow">Trump’s World Liberty Financial to Raise $300M via New Token Sale</a>

US SEC Sues Cumberland DRW for Unregistered Crypto Asset Trading

Table of Contents

TheNewsCrypto

Other articles published on Oct 11, 2024

Fidelity Data Breach Exposes Personal Information of Over 77,000 Customers

$1000 In NEIRO, POPCAT, Or ETFSwap? ETFS Token To Print 800x Gains Before You Know It

Bitcoin Price Drops 3% to $58,900 Low After CPI Data Release

Crypto Traders Brace for Impact with Bitcoin and Ethereum Options Set to Expire

Binance Introduces Trading Bots for New Pairs

Significant Outflows from Spot Bitcoin ETFs Prompt Market Reassessment

Join our free newsletter for daily crypto updates!