{"id":39314,"date":"2024-10-10T18:56:55","date_gmt":"2024-10-10T18:56:55","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/sec-sues-crypto-market-maker-cumberland-drw\/"},"modified":"2024-10-10T18:56:55","modified_gmt":"2024-10-10T18:56:55","slug":"sec-sues-crypto-market-maker-cumberland-drw","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/sec-sues-crypto-market-maker-cumberland-drw\/","title":{"rendered":"SEC sues crypto market maker Cumberland DRW"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/03\/different-types-of-cryptocurrencies-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/03\/different-types-of-cryptocurrencies-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/03\/different-types-of-cryptocurrencies-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/03\/different-types-of-cryptocurrencies-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>SEC has sued market maker Cumberland over offering and sale of unregistered securities.<\/li>\n<li>The regulator says Cumberland violated the US securities laws by operating as an unregistered dealer.<\/li>\n<\/ul>\n<p>The US Securities and Exchange Commission has sued Cumberland DRW LLC, a Chicago-based crypto market maker, for acting as an unregistered securities dealer.<\/p>\n<p><a href=\"https:\/\/coinjournal.net\/news\/tag\/sec\/\">SEC<\/a> said in a <a href=\"https:\/\/www.sec.gov\/newsroom\/press-releases\/2024-169\" target=\"_blank\" rel=\"noopener\">press release<\/a> on Oct. 10 that Cumberland had violated the securities laws by buying and selling of over $2 billion worth of crypto assets since March 2018. In terms of crypto regulation, the SEC says the assets in question were \u201coffered and sold as securities.\u201d<\/p>\n<h2>Investment securities<\/h2>\n<p>According to the press release, Cumberland provided these crypto assets via its own accounts, the SEC added, which meant the company operated as an unregistered dealer.<\/p>\n<p>The agency\u2019s charge against the market maker also notes Cumberland\u2019s description of itself as a \u201cleading liquidity provider\u201d, and traded with counterparties via telephone or its online platform Marea.<\/p>\n<p>\u201cDespite frequent protestations by the industry that sales of crypto assets are all akin to sales of commodities, our complaint alleges that Cumberland, the respective issuers, and objective investors treated the offer and sale of the crypto assets at issue in this case as investments in securities,\u201d Jorge G. Tenreiro, acting chief of the SEC\u2019s crypto assets and cyber unit, said in a statement.<\/p>\n<p>Tenreiro added that Cumberland profited from these activities but did not provide investors and the broader market the crucial protections that registration with the regulator offers.<\/p>\n<h2>SEC seeks permanent injuction against Cumberland<\/h2>\n<p>In a complaint filed at the US District Court for the Northern District of Illinois, SEC alleges violation of Section 15(a) of the Securities Exchange Act of 1934.<\/p>\n<p>In its argument, it wants a permanent injunction against Cumberland. The crypto platform should also forfeit all ill-gotten gains, and be slapped with a civil penalty.<\/p>\n<p>SEC\u2019s lawsuit against Cumberland come a day after US prosecutors <a href=\"https:\/\/coinjournal.net\/news\/us-charges-18-people-companies-for-crypto-fraud\/\">charged 14 people and four crypto companies<\/a> over market manipulation and fraud. Oct. 10 also saw Ripple file a cross-appeal following the regulators decision to appeal its case against Ripple.<\/p>\n<p>Earlier this week, Crypto.com <a href=\"https:\/\/coinjournal.net\/news\/crypto-com-sues-the-us-sec-after-wells-notice\/\">sued the SEC<\/a> after the regulator issued a Wells Notice to the crypto exchange.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/sec-sues-crypto-market-maker-cumberland-drw\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) SEC has sued market maker Cumberland over offering and sale of unregistered securities. The regulator says Cumberland violated the US securities laws by operating as an unregistered dealer. The US Securities and Exchange Commission has sued Cumberland DRW LLC, a Chicago-based [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":39315,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/39314"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=39314"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/39314\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/39315"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=39314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=39314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=39314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}