The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Cumberland DRW, claiming the firm acted as an unregistered securities dealer by trading cryptocurrencies marketed as securities without appropriate registration.

The SEC specifically named several cryptocurrencies, including Polygon (formerly MATIC), Solana (SOL), Cosmos (ATOM), Algorand (ALGO), and Filecoin (FIL), as examples of digital assets involved in the alleged unlawful trading practices.

According to the complaint, the SEC argues that statements made by Cumberland regarding these cryptocurrencies would have led investors to interpret them as securities under federal laws. Furthermore, it suggests that Cumberland used its research reports and communication to promote these investments, which misled investors regarding their legality.

Cumberland has responded to the lawsuit, stating through social media that it does not plan to alter its business operations in light of the SEC's action. The company expressed confidence in its regulatory compliance and operational practices despite the ongoing legal challenges.

The SEC seeks a permanent injunction against Cumberland and full repayment of illegally obtained profits.