SEC Charges Cumberland DRW with Operating as Unregistered Dealer in Crypto Asset Market

The Chicago-based firm faces charges for trading more than $2 billion in crypto assets without complying with regulatory requirements.

The U.S. Securities and Exchange Commission (SEC) has filed charges against Cumberland DRW LLC, a Chicago-based company, accused of operating as an unregistered dealer in the crypto asset market. According to the SEC, Cumberland has been buying and selling crypto assets valued at more than $2 billion, which were offered and sold as securities, in violation of federal laws that require proper registration of dealers to protect investors.

SEC Charges Against Cumberland DRW

In its October 10, 2024 press release, the SEC details that Cumberland DRW has been operating as an unregistered dealer since at least March 2018. The company, which calls itself “one of the leading providers of liquidity in cryptoassets globally,” conducts transactions 24 hours a day, seven days a week. These transactions are carried out through counterparties using its online trading platform, called Marea, or by telephone.

According to the complaint filed with the United States District Court for the Northern District of Illinois, the SEC accuses Cumberland of violating Section 15(a) of the Securities Exchange Act of 1934. This provision requires all securities dealers, including those in the cryptoasset market, to register with the Commission to comply with regulations designed to protect investors and the market in general.

Cumberland's Role in the Cryptocurrency Market

Cumberland DRW has been a prominent player in the cryptocurrencies market, facilitating the trading of digital assets through third-party exchanges. #SEC #exchange #EEUU #criptomonedas. #comercio