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ARTICLE · 18 OCTOBER 2024

SEC Alleges Cumberland DRW Sold $2 Billion In Unregistered Securities

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In a new enforcement action that adds fuel to the ongoing regulatory battle over digital assets, the U.S. Securities and Exchange Commission (SEC) has sued Chicago-based crypto trading firm Cumberland DRW.

United StatesTechnology
Braeden Anderson
Braeden Anderson

In a new enforcement action that adds fuel to the ongoing regulatory battle over digital assets, the U.S. Securities and Exchange Commission (SEC) has sued Chicago-based crypto trading firm Cumberland DRW. The lawsuit, filed on October 10, 2024, accuses Cumberland of operating as an unregistered broker and handling over $2 billion worth of crypto assets—specifically, tokens like Solana and Polygon—that the SEC claims are unregistered securities.

SEC's Allegations

According to the SEC, since 2018, Cumberland has facilitated trades of digital assets that meet the legal definition of securities but were never registered as such. The agency asserts that by failing to register, Cumberland violated federal securities laws. The SEC's suit seeks several remedies, including disgorgement of profits Cumberland earned from these trades, civil penalties, and a court order mandating compliance with registration requirements.

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