SEC Sues Cumberland DRW for Operating as an Unregistered Securities Dealer

According to a recent lawsuit filed by the US Securities and Exchange Commission (SEC), Cumberland DRW is accused of engaging in unregistered securities dealing.

The lawsuit alleges that Cumberland purchased and sold cryptocurrencies, specifically Polygon’s POL, Solana’s SOL, Cosmos’ ATOM, Algorand’s ALGO, and Filecoin’s FIL, without being properly registered.

The SEC claims that Cumberland used its research reports and email updates as marketing tools for these investments and that these investments were sold as unregistered securities.

The SEC also states that statements made by both Cumberland and third-party trading platforms would have led investors to believe they were investing in securities.

Although investors were expecting to profit, Cumberland never registered as a securities dealer.