The US Securities and Exchange Commission has accused Cumberland DRW of operating as an unregistered securities dealer, claiming the firm bought and sold cryptocurrencies that were marketed as investment products without proper registration. The regulator cited specific digital assets, including Polygon, Solana, Cosmos, Algorand, and Filecoin, as examples of securities that were allegedly sold without compliance with federal securities laws.
According to the SEC, Cumberland used research reports and email updates to promote investments in these assets, leading investors to expect profits. However, the company failed to register as a securities dealer, prompting the SEC to seek a permanent injunction and disgorgement of proceeds.
Cumberland has responded to the lawsuit, stating that it will not alter its business operations or the assets in which it provides liquidity, and expressing confidence in its compliance framework and adherence to regulatory rules.