US Indicts Founder Of Crypto Firm Gotbit For Alleged Market Manipulation
The U.S. Justice Department has indicted Aleksei Andriunin, founder of Gotbit, for alleged market manipulation, highlighting increased scrutiny in the cryptocurrency sector.
The U.S. Securities and Exchange Commission (SEC) has charged Cumberland DRW, a prominent crypto market maker, for operating as an unregistered dealer in the cryptocurrency market. The SEC claims that Cumberland has engaged in transactions involving over $2 billion in crypto assets since March 2018, which the agency classifies as securities.
The SEC's action against Cumberland DRW highlights ongoing tensions between cryptocurrency firms and regulatory bodies. According to the SEC, Cumberland has been buying and selling crypto assets deemed securities and trading them as investment contracts on various third-party exchanges. This practice, the SEC argues, violates federal securities laws that mandate registration for all dealers.
The SEC's stance is clear: all dealers in securities, including those operating in the crypto space, must register with the Commission. Jorge G. Tenreiro, the acting chief of the SEC's crypto assets and cyber unit, emphasized that the laws apply equally to traditional securities and crypto assets.
In response to the charges, a spokesperson for Cumberland expressed frustration and disappointment. The spokesperson stated that the firm has been unable to comply with the SEC's registration requirements due to a lack of clear regulatory frameworks. They pointed out that the SEC Chairman Gary Gensler has encouraged firms to register, yet Cumberland has faced restrictions on using its dormant registered broker-dealer for crypto activities.
The SEC's actions against Cumberland DRW are part of a larger pattern of regulatory scrutiny facing the cryptocurrency industry. The agency has been involved in legal disputes with several major crypto platforms, including Coinbase, Binance, and Kraken. These companies argue that many crypto assets do not fit the traditional definition of securities, challenging the SEC's authority in this domain.
The charges against Cumberland DRW underscore the complexities and challenges of navigating the regulatory landscape in the rapidly evolving cryptocurrency market. As the SEC continues to assert its jurisdiction over crypto assets, firms in the industry must grapple with the implications of these regulations and the potential for further legal battles ahead.
The U.S. Justice Department has indicted Aleksei Andriunin, founder of Gotbit, for alleged market manipulation, highlighting increased scrutiny in the cryptocurrency sector.
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