The SEC has charged Cumberland DRW LLC, a Chicago-based firm, with acting as an unregistered broker by conducting $2 billion worth of cryptocurrency trades.
In a statement, the SEC said that despite the firm's classification as a "liquidity provider, risk taker and latency-sensitive trading firm," it charged Cumberland for its activities as an unregistered broker.
The SEC's complaint alleges that Cumberland, along with issuers of cryptocurrencies, treated offers and sales of these assets as securities, resulting in profits for Cumberland without providing necessary protections to investors.
Subscribe to our Telegram channel to get weekly short digests about events that shape the crypto world
According to the SEC, Cumberland has made millions of dollars through its trading activities with investors while ignoring the registration requirements of the federal securities laws.