Cryptocurrencies
SEC Says Cumberland DRW Acted as Unregistered Crypto Dealer
- Cumberland runs one of the largest trading desks in crypto
- Firm is also a market maker for several Bitcoin ETF products
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The US Securities and Exchange Commission has accused the cryptocurrency arm of Chicago-based proprietary trading giant DRW Holdings LLC of operating as an unregistered securities dealer in more than $2 billion of digital assets.
In its latest attempt to crack down on the crypto industry, the market regulator said Cumberland DRW bypassed registration rules designed to protect investors and brought in millions in the process. Since at least March 2018 through the present, Cumberland bought and sold crypto assets 24 hours a day, seven days a week, the SEC said in a lawsuit filed in federal court in Illinois.