{"id":96159,"date":"2024-10-10T17:01:32","date_gmt":"2024-10-10T21:01:32","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=96159"},"modified":"2024-10-10T17:03:36","modified_gmt":"2024-10-10T21:03:36","slug":"sec-sues-cumberland-drw-for-operating","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/sec-sues-cumberland-drw-for-operating\/","title":{"rendered":"SEC Sues Cumberland DRW for Unregistered Securities Dealer"},"content":{"rendered":"\n

Cumberland DRW LLC is facing allegations from the U.S. Securities and Exchange Commission<\/a> for engaging in unregistered dealer activities.<\/p>\n\n\n\n

\"SEC
SEC Sues Cumberland DRW for Unregistered Securities Dealer<\/figcaption><\/figure>\n\n\n\n

According to the SEC, Cumberland, a market maker for cryptocurrencies in Chicago, purchased and sold over $2 billion worth of cryptocurrency assets<\/a>\u2014including those classified as securities\u2014without first registering as required by federal securities laws. <\/p>\n\n\n\n

According to the SEC's complaint, Cumberland has allegedly been engaging in these actions since at least 2018 over the phone and through its trading platform, Marea.\u00a0<\/p>\n\n\n\n

\n

The SEC has filed a complaint against Cumberland DRW LLC for operating as an unregistered securities dealer

h\/t @inforacrypto\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> pic.twitter.com\/OFAAyXDlr2<\/use><\/svg><\/span><\/a><\/p>— Dumpster DAO (@Dumpster_DAO) October 10, 2024<\/use><\/svg><\/span><\/a><\/blockquote>

According to the SEC, Cumberland advertised itself as a significant liquidity provider<\/a> and traded various cryptocurrency assets, such as those connected to Polygon, Solana, Cosmos, Algorand, and Filecoin.<\/p>\n\n\n\n

The SEC said in its statement that registration is mandatory for all dealers under federal laws, regardless of whether they trade in traditional securities or cryptocurrency assets.\u00a0<\/p>\n\n\n\n

SEC vs. Crypto<\/h2>\n\n\n\n

The SEC Chair, Gary Gensler, has taken a hard stand against the cryptocurrency business, believing it to be full of dishonest and unlawful activities<\/a>. <\/p>\n\n\n\n

Because of his leadership, a number of legal lawsuits against cryptocurrency companies have been brought, claiming that many cryptocurrencies are unregistered securities and, hence, subject to SEC regulation. <\/p>\n\n\n\n

SEC Commissioner Mark Uyeda attacked the agency's approach to regulating cryptocurrencies earlier this week. <\/p>\n\n\n\n

Crypto.com brought the lawsuit against the SEC in response to a Wells notice that claimed the site was an unregistered broker-dealer<\/use><\/svg><\/span><\/a> and securities clearing firm.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Cumberland DRW LLC is facing allegations from the U.S. Securities and Exchange Commission for engaging in unregistered dealer activities. According to the SEC, Cumberland, a market maker for cryptocurrencies in Chicago, purchased and sold over $2 billion worth of cryptocurrency assets\u2014including those classified as securities\u2014without first registering as required by federal securities laws. According to […]<\/p>\n","protected":false},"author":43,"featured_media":96160,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[22298,1920,143],"class_list":["post-96159","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-cumberland-drw","tag-gary-gensler","tag-sec"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/10\/croc_1728592891486.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/96159","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=96159"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/96159\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/96160"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=96159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=96159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=96159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}