🇺🇸 The U.S. SEC has filed a lawsuit against crypto market maker Cumberland DRW, accusing the firm of violating securities laws.

According to the charges, since 2018, Cumberland has traded over $2 billion worth of crypto assets, some of which the SEC classifies as unregistered securities, making them fall under the agency's jurisdiction. These assets include MATIC, SOL, ATOM, ALGO, and FIL.

Unlike many other crypto companies the SEC is pursuing, Cumberland has not worked with individual or retail investors. The SEC is seeking a court injunction to halt Cumberland's operations, along with the recovery of what it deems "illegally" earned profits and the imposition of fines. In response, Cumberland stated that it will defend itself in court and will continue its operations without making changes to its business practices.

Cumberland is the cryptocurrency division of DRW Holdings, a high-frequency trading firm founded in 1992. Cumberland was one of the first, and has since become a leading, market maker in the crypto industry, providing liquidity to major exchanges and U.S. exchange-traded funds (ETFs).