United States of America: Filed SEC lawsuit against Cumberland DRW's alleged non-compliance with business registration obligation

On 10 October 2024, the Securities and Exchange Commission (SEC) charged Cumberland DRW LLC, a Chicago-based company, for operating as an unregistered dealer in crypto assets worth over USD 2 billion, in violation of federal securities laws. According to the ruling, Cumberland has been buying and selling crypto assets that are considered securities since March 2018 without the necessary registration. This activity was conducted through its regular business operations, including trades made over the phone or via its online platform, Marea. The SEC emphasizes that all dealers in securities, including those in the crypto asset markets, must register with the Commission. The complaint seeks permanent injunctive relief, disgorgement of profits made from these activities, prejudgment interest, and civil penalties.