Published on oktober 11, 2024, 12:42 am
Image source: Fox News
```json [ "TLDR: Cumberland, a major crypto player, is facing SEC action for unregistered crypto activities involving over $2 billion since 2018. SEC accuses Cumberland of being an unregistered dealer. Cumberland registered as a dealer-broker in 2019 but later found out it only covered BTC and ETH. SEC alleges five tokens handled by Cumberland are securities. Crypto.com also took legal action against the SEC seeking relief. This situation highlights increasing tensions between crypto firms and regulators." ] ```
Cumberland, a major player in the crypto space, has reportedly been involved in unregistered crypto dealings worth around $2 billion since 2018. The United States Securities and Exchange Commission (SEC) recently took legal action against Cumberland DRW for allegedly operating as an unregistered dealer.
According to the SEC’s claims, Cumberland engaged in the sale of over $2 billion in crypto assets since 2018 without complying with federal registration requirements. The SEC accused Cumberland of acting as an unregistered dealer in its proprietary trading activities and while trading on third-party crypto exchanges.
The regulatory agency is seeking various forms of relief from Cumberland, including permanent injunctive measures, disgorgement of any profits obtained unlawfully, prejudgment interest, and civil penalties. The SEC specifically identified five tokens handled by Cumberland – Polygon (MATIC), Solana (SOL), Cosmos (ATOM), Algorand (ALGO), and Filecoin (FIL) – as securities.
In response to the SEC’s allegations, Cumberland stated that it had registered as a dealer-broker back in 2019 but later discovered that the registration only covered Bitcoin (BTC) and Ether (ETH). This revelation left other tokens outside the scope of their initial registration.
Notably, Cumberland emphasized that it is not alone in facing scrutiny from the SEC regarding digital assets. Following a warning from the SEC through a Wells notice, Crypto.com decided to take legal action against the agency on October 8th. The lawsuit filed by Crypto.com seeks declaratory and injunctive relief from a Texas district court to establish that Crypto.com is not a securities broker-dealer mandated to register under the Exchange Act.
This recent series of events underscores the escalating tensions between cryptocurrency firms and regulatory bodies like the SEC. Both Cumberland and Crypto.com are pushing back against allegations brought forth by regulators in what appears to be a growing legal battle within the crypto industry.
Original article posted by Fox News
