SEC Files Lawsuit Against Cumberland DRW for Operating as Unregistered Crypto Dealer

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The SEC filed a lawsuit against Cumberland DRW on October 10, citing the company for operating as an unregistered dealer.

It is alleged that since 2018, Cumberland has sold over $2 billion in cryptocurrency assets, in violation of federal registration regulations.

The complaint states that Cumberland acted as an unregistered dealer in its proprietary trading and third-party crypto asset exchanges. The SEC is seeking permanent injunction, disgorgement of profits, pre-judgment interest, and civil penalties.

The agency also claims that five of the tokens traded by Cumberland, including Polygon, Solana, Cosmos, Algorand, and Filecoin, are considered securities and should have been registered as such.

The SEC had previously identified these tokens as securities. The complaint states that Cumberland failed to register as a securities dealer with the Commission, thus violating Section 15(a) of the Securities Exchange Act of 1934.