(Bloomberg) -- The US Securities and Exchange Commission has accused the cryptocurrency arm of Chicago-based proprietary trading giant DRW Holdings LLC of operating as an unregistered securities dealer in more than $2 billion of digital assets.

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In its latest attempt to crack down on the crypto industry, the market regulator said Cumberland DRW bypassed registration rules designed to protect investors and brought in millions in the process. Since at least March 2018 through the present, Cumberland bought and sold crypto assets 24 hours a day, seven days a week, the SEC said in a lawsuit filed in federal court in Illinois.

“The federal securities laws require all dealers in all securities to register with the commission, and those who operate in the crypto asset markets are no exception,” Jorge Tenreiro, acting chief of the SEC’s crypto assets and cyber unit said in a statement.

Launched in 2014 as the crypto arm of Chicago firm DRW Holdings, Cumberland is one of the largest trading desks in crypto. It is part of DRW Holdings, the firm founded by Don Wilson in 1992 and known for its derivatives trading in the traditional financial market.

Cumberland is also a market maker for several Bitcoin exchange-traded funds products. A firm spokeswoman said it made “good-faith efforts” to comply with SEC rules and was frustrated by the SEC’s allegations.

“We and others in the crypto industry have repeatedly sought clarity from regulators on the appropriate application of securities laws in the cryptoasset space. For the SEC to meet these good-faith efforts with a legal action is an incredibly frustrating and disappointing development, although not surprising given the enforcement-first approach we have seen in recent years from the SEC,” the spokeswoman said.

On Tuesday, Crypto.com filed a lawsuit against the SEC after saying it received a Wells Notice indicating the regulator’s intention to sue the digital-asset exchange for operating as an unregistered broker-dealer and securities clearing agency. The SEC does not comment on the existence or nonexistence of a possible investigation, an agency spokesperson said Tuesday in regard to Singapore-based Crypto.com.

The Cumberland allegations represent the latest in a string of enforcement actions brought by the SEC against the crypto industry in recent years. Companies including Kraken, Coinbase, Consensys and Uniswap have all been targets of such notices or lawsuits in the past, with some still engaged in legal proceedings.

Cumberland offers services such as over-the-counter trading, derivatives and bilateral options products.

Cumberland DRW in June announced that the New York State Department of Financial Services granted its New York-based entity a virtual currency license called BitLicense, which is one of the most difficult licenses for crypto companies to obtain.

Cumberland largely conducts its trading business through its online trading platform, Marea, the SEC said in its complaint. Through the platform the firm provides quotes to, and trades with others allowed to join the platform. the firm has allowed more than 1,500 high-net-worth individuals and organizations to join, including “prominent participants” in the crypto industry, such as funds managed by crypto asset investment firms and certain now defunct crypto asset hedge funds, the SEC said.

--With assistance from Olga Kharif.

(Updates with comment from DRW beginning in the fifth paragraph.)

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