Tuesday, November 12, 2024
6.8 C
London

SEC Targets Crypto Trading Firm Cumberland in Latest Lawsuit Over Unregistered Securities

The case is the latest in a series of actions targeting prominent crypto companies such as Kraken, Binance, and Ripple Labs, signaling the SEC’s continued focus on regulating the digital asset space. However, Cumberland, though a major player in the cryptocurrency industry, is less well-known to the public.

Cumberland DRW, a subsidiary of DRW Trading Group, is one of the largest liquidity providers and market makers in the digital asset sector. Founded in 2014, the firm facilitates cryptocurrency trades, including Bitcoin, Ether, Solana, and Polygon, on major exchanges. As a market maker, Cumberland helps stabilize token prices and supports the efficient execution of large trades by institutional investors. 

Source: SEC

On Thursday, the SEC charged Cumberland with handling more than $2 billion worth of cryptocurrencies as an unregistered dealer. The complaint alleges that the firm traded crypto assets offered as investment contracts on third-party exchanges, including tokens previously identified by the SEC as securities, such as Solana and Polygon.

 

Cumberland Denies Wrongdoing

In response, Cumberland has denied any wrongdoing, claiming that it has been engaged in good-faith discussions with the SEC since 2019. The firm argued that it initially registered as a dealer-broker for Bitcoin and Ether but had no guidance from the SEC regarding the other tokens involved until now. 

Cumberland remains defiant, stating that it will not alter its business operations and is prepared to defend itself in court. 

Source: Cumberland

This case could have broader implications for the crypto industry, potentially affecting other firms and traders operating without SEC registration. Cumberland is not the first to challenge the SEC’s regulatory stance; Crypto.com recently sued the agency over similar issues.

As the SEC continues to broaden its scrutiny, companies in the crypto space are closely watching these legal battles, which could reshape the regulatory landscape for digital assets in the U.S.

 

Hot this week

Could XRP, Solana be next in the crypto ETF race after Trump’s win?

Journalist Posted: November 12, 2024 The growing interest in crypto ETFs...

Just In: Bitcoin (BTC) sets another record high for the day; $100k in close reach?

contributor Posted: November 12, 2024 Bitcoin has registered a rapid rise...

Is Bitcoin’s bull run at risk of ending after $81K ATH?

Bitcoin bull run is at high risk of losing...

Elon Musk pushes for Fed overhaul – Could Bitcoin be the key?

Musk supports Trump’s push for presidential control over the...

BTC Climbs to $85,000: Why is Bitcoin Up Today?

In what has been a monumental show of strength...

Topics

Could XRP, Solana be next in the crypto ETF race after Trump’s win?

Journalist Posted: November 12, 2024 The growing interest in crypto ETFs...

Just In: Bitcoin (BTC) sets another record high for the day; $100k in close reach?

contributor Posted: November 12, 2024 Bitcoin has registered a rapid rise...

Is Bitcoin’s bull run at risk of ending after $81K ATH?

Bitcoin bull run is at high risk of losing...

Elon Musk pushes for Fed overhaul – Could Bitcoin be the key?

Musk supports Trump’s push for presidential control over the...

BTC Climbs to $85,000: Why is Bitcoin Up Today?

In what has been a monumental show of strength...

Bitcoin at $81K: Is extreme ‘crypto greed’ a warning for BTC traders?

With the crypto greed index at elevated levels, asset...

MicroStrategy Buys $2B More in Bitcoin at $74,463 per Coin

MicroStrategy, the Virginia-based business intelligence firm run by Michael...

BRICS Announces Proposal to Create Global Crypto Investment Platform

In what is certainly a groundbreaking moment for the...
spot_img

Related Articles

Popular Categories

spot_imgspot_img