Cumberland allegedly had $2 billion worth of unregistered crypto dealing since 2018.
The United States Securities and Exchange Commission (SEC) filed suit against Cumberland DRW on Oct. 10, advancing a single charge of operating as an unregistered dealer. Cumberland has allegedly sold more than $2 billion in crypto assets since 2018 in violation of federal registration requirements.
The SEC claims that Cumberland acted as an unregistered dealer in its proprietary trading (trading on its own accounts) and when trading on third-party crypto asset exchanges. The agency is seeking permanent injunctive relief, disgorgement of ill-gotten gains, prejudgment interest and civil penalties.
The SEC claimed that five of the tokens Cumberland handles are securities. Specifically, they are Polygon (MATIC), Solana (SOL), Cosmos (ATOM), Algorand (ALGO), and Filecoin (FIL). The agency identified all of them as securities in the past. According to the complaint:
