SEC Accuses Cryptocurrency Market Maker Cumberland of Operating Illegally Without Registration
Date: 2024-10-11 Author: Gabriel Deangelo Categories: BUSINESS
According to the SEC’s complaint, Cumberland has been buying and selling cryptocurrency assets classified as securities into its accounts without the required registration as part of its regular business activities since March 2018. Specifically, the company is accused of conducting 24-hour cryptocurrency trading via phone or the Marea platform, as well as regularly trading on external exchanges.
The complaint also notes that Cumberland was engaged in trading crypto assets that the agency considers investment contracts, and therefore securities. Examples of assets cited include POL (formerly MATIC), SOL, FIL, ALGO, and ATOM.
Cumberland Denies SEC Allegations, Challenges Cryptocurrency Classification as Securities
In response to the allegations, the company criticized the SEC’s enforcement-focused approach, arguing that they are being targeted in an attempt to stifle innovation. Cumberland specifically challenged the determination that certain cryptocurrency transactions are securities.
“We have engaged in good faith negotiations with the SEC on this issue for five years,” the company said. “We have provided dozens of written statements, thousands of pages of documents, and secured access to interviews with senior management and compliance officers. Today’s complaint is the first time the SEC has detailed the specific transactions that raise questions.”
Cumberland also said it will continue to operate unchanged despite the SEC’s actions.
