According to Fortune, the US Securities and Exchange Commission will sue Ripple for selling unlicensed securities in the form of XRP tokens.
In a move reminiscent of Coinbase’s recent exposure in The New York Times of an alleged treatment of employees of color, Ripple President Brad Garlinghouse took the unusual step of posting on Twitter to legitimize public opinion.
Bitcoin (BTC) and Ether (ETH) have both escaped implementation of SEC due to their decentralized nature. However, XRP, a code associated with Ripple, has long been criticized by some members of the crypto community for being too focused. Ripple has a deposit account of about 50 billion XRP, or about half of the total offering, which according to CTO David Schwartz has been “donated” by the creators of the third-largest cryptocurrency.
Despite the class-action lawsuits and bitter divisions among the original founders, Ripple survived to become one of the wealthiest companies in the fintech industry with a reserve – mainly in XRP – that could theoretically be worth around $ 25 billion, even after a dramatic 13, 5%. Decline in the value of the cryptocurrency symbol after news of a possible lawsuit.
A Ripple-related source told Cointelegraph:
“There is no way that [XRP] is not a value.”
Ripple posted a document Wells on its website explaining its position, stating: “By claiming that Ripple’s XRP distribution is an investment contract, while maintaining that Bitcoin and Ether are not securities, the committee selects winners and losers from the virtual currency by means of the ongoing destruction of the American company. ., Consumer-friendly innovation in the process. ”
The company claimed without evidence that Bitcoin and Ether are “two hypothetical currencies controlled by China that the SEC believes are not securities” and that “innovation in the cryptocurrency industry will move to China” if there is potential legal action. Led by the SEC for success.
According to Fortune, both Garlinghouse and co-founder Chris Larsen, whose total net worth is estimated at $ 13 billion, are expected to be named as defendants in a possible lawsuit.
While Garlinghouse said Ripple will continue to thrive even with the appointment of XRP security, the company recently said it is looking for a new headquarters outside the United States, arguing that a lack of regulatory clarity is driving it into action.
Cointelegraph asked Ripple to comment on whether Larsen and Garlinghouse would remain in the US in light of a possible lawsuit, and had not received any response at the time of publication.