According to the SEC, Cumberland acted as an unregistered dealer in handling more than $2 billion in cryptocurrency. The complaint alleges that the company traded “crypto assets that were offered and sold as investment contracts on third-party crypto asset exchanges.” In the complaint, the SEC identified five assets it considers securities, including Solana, Polygon, Cosmos, Algorand, and Filecoin, but noted that the list is not exhaustive. Meanwhile, cryptocurrency exchange Crypto.com announced on Tuesday that it had filed a lawsuit against the SEC after receiving notice of impending legal action. In a statement, Jorge G. Tenreiro, Acting Chief of the SEC’s Crypto Asset and Cybersecurity Division (CACU), emphasized: “While the industry often protests that the sale of crypto assets is similar to the sale of commodities, our complaint asserts that Cumberland, along with related issuers and investors, treated these transactions as investments in securities.” He also pointed out that Cumberland profited from the brokerage of these assets without providing important protections to investors through registration. Cumberland has not issued a formal response to the SEC’s allegations, but posted a statement on X, asserting that the company will not make any changes to its business operations or liquidity assets as a result of the lawsuit.
source: tapchibitcoin.
