Large market maker Cumberland withdrew from Coinbase and Binance almost $70 million of assets

Cumberland withdrew $46 million in Ethereum, 23 million BUSD and other coins from leading cryptocurrency exchanges

Cumberland, one of the largest cryptocurrency market makers, withdrew about $70 million from Coinbase and Binance exchanges in the last two days. The company took $46 million in Ethereum, 23 million BUSD ($23 million). As well as other coins after it became known that the Securities and Exchange Commission (SEC) sued the two exchanges.

Cumberland is a subsidiary of Chicago-based trading firm DRW, created in 2014. It provides liquidity on leading centralized and decentralized crypto exchanges.

Cumberland took about 20,000 ETH ($37 million) from the Coinbase exchange and 4.85,000 ETH ($9 million) from Binance, according to analyst service Lookonchain.

In addition to Ethereum, Cumberland withdrew other cryptocurrencies, analysts noted. Among them were tokens Axie Infinity (AXS), Shiba Inu (SHIB), Compound (COMP), Chainlink (LINK), Curve DAO (CRV) and Aave (AAVE).

A week earlier, in late May, Cumberland stopped trading Firecoin (FIL) because the SEC classified the cryptocurrency as a security token. That is, assets that fall under the definition of securities.

A security token is a crypto-asset that represents a certain amount of ownership of something. For example, part of a company. They can be issued by a business or government and serve the same purpose as securities (stocks).

In addition, Nansen data shows that Cumberland has withdrawn more than 23 million BUSD from Binance in the past 24 hours, noted cryptojournalist Colin Wu. The market maker transferred them to Paxos, the company that issued the stablecoin. The firm has been banned from issuing new tokens, but it continues to redeem old ones.

It also became known that Robinhood will review its work with some cryptocurrencies.

Our experts note that Robinhood provides users with access to 18 cryptocurrencies. These include Solana (SOL), Cardano (ADA) and Polygon (MATIC). These have now been called unregistered securities by the SEC in lawsuits against cryptocurrency exchanges.