SEC Strikes Again: Cumberland DRW Charged For ‘Unregistered Crypto Operations’
10 Outubro 2024 - 4:48PM
NEWSBTC
The US Securities and Exchange Commission (SEC) has stepped up its
regulatory scrutiny of the crypto industry by charging Cumberland
DRW LLC with operating as an “unregistered dealer”, underscoring
the agency’s relentless enforcement approach that has come under
increasing criticism from stakeholders and advocates in the digital
asset space. Accused Of Trading $2B In Crypto As ‘Unregistered
Dealer’ In a statement released on Thursday, the SEC revealed that
Chicago-based Cumberland DRW is accused of trading over $2 billion
in crypto assets offered and sold as alleged “securities” in
violation of federal registration requirements designed to protect
investors. The SEC’s complaint alleges that Cumberland has
been engaging in these activities since at least March 2018, acting
as an “unregistered dealer” by buying and selling crypto assets for
its own accounts as part of its regular business operations.
Related Reading: US Charges 14 Individuals And Four Crypto
Companies In Major ‘Sham Trading’ Scandal According to the firm’s
website, it provided “deep, reliable liquidity” in crypto assets,
as well as investing in technology, claiming to have decades of
experience in the field. Cumberland DRW has publicly
positioned itself as “one of the world’s leading liquidity
providers” in the digital asset market, operating around the clock
and executing trades with counterparties via telephone and its
online platform, Marea. Cumberland also offered spot
cryptocurrency liquidity, and operations for “dozens” of
cryptocurrencies, including stablecoins, for institutional
investors in the market. Other services offered by the company
included options and futures trading, bilateral crypto options, and
non-deliverable forwards. SEC Seeks Penalties Against
Cumberland DRW The SEC further alleges that Cumberland has been
trading crypto assets treated as investment contracts on
third-party exchanges. Jorge G. Tenreiro, Acting Chief of the SEC’s
Crypto Assets and Cyber Unit, stated: The federal securities
laws require all dealers in all securities to register with the
Commission, and those who operate in the crypto asset markets are
no exception. Related Reading: Solana Bullish Pattern Signals
Massive Gains Ahead – 2021 Rally Could Repeat The SEC’s Head Of the
digital assets divison noted that despite industry claims equating
crypto asset sales to commodity sales, the SEC’s complaint asserts
that Cumberland, the issuers, and investors viewed the transactions
as investments in securities. Tenreiro further alleged:
Cumberland profited from its dealer activity in these assets
without providing investors and the market with the important
protections afforded by registration. The SEC’s complaint was filed
in the US District Court for the Northern District of Illinois and
charges Cumberland with violating Section 15(a) of the Securities
Exchange Act of 1934. The agency is seeking permanent injunctive
relief, recovery of ill-gotten gains, prejudgment interest, and
civil penalties against the firm. Featured image from DALL-E, chart
from TradingView.com
Solana (COIN:SOLUSD)
Gráfico Histórico do Ativo
De Out 2024 até Nov 2024
Solana (COIN:SOLUSD)
Gráfico Histórico do Ativo
De Nov 2023 até Nov 2024