The Securities and Exchange Commission (SEC) today charged Chicago-based Cumberland DRW LLC with operating as an unregistered dealer in more than $2 billion of crypto assets offered and sold as securities, in violation of the registration requirements of the federal securities laws.
According to the SEC’s complaint, since at least March 2018 through the present, Cumberland has acted as an unregistered dealer by buying and selling crypto assets offered and sold as securities for its own accounts as part of its regular business.
As alleged in the complaint, Cumberland publicly calls itself “one of the world’s leading liquidity providers” in crypto assets and operates 24 hours a day, seven days a week by trading with counterparties by the telephone or through its online trading platform, Marea.
The SEC’s complaint further alleges that Cumberland engages in trading crypto assets that are offered and sold as investment contracts on third-party crypto asset exchanges as part of its regular business.
The SEC’s complaint, filed in U.S. District Court for the Northern District of Illinois, charges Cumberland with violating Section 15(a) of the Securities Exchange Act of 1934. The complaint seeks permanent injunctive relief, disgorgement of ill-gotten gains, prejudgment interest, and civil penalties.
