SEC filed a lawsuit againg Ripple Labs Inc
The Securities and Exchange Commission filed an action last week against Ripple Labs Inc. and two of its executives, who are also essential security holders, alleging that through an unregistered, ongoing sale of digital asset securities, they raised over $1.3 billion.
Ripple; Christian Larsen, co-founder of the firm, executive chairman of its board, and former CEO; and Bradley Garlinghouse, current CEO of the company, raised capital to fund the company's business, according to the SEC lawsuit. The lawsuit charges that, starting in 2013, Ripple raised funds through the selling of digital assets known as XRP through an unregistered securities offering to U.S. and worldwide investors. In return for non-cash consideration, Ripple also allegedly allocated billions of XRP, such as labor and market-making services. According to the lawsuit, Larsen and Garlinghouse have made personal XRP unregistered sales of approximately $600 million in addition to structuring and promoting the XRP sales used to fund the company's business. The lawsuit charges that, in breach of the registration requirements of the federal securities laws, the defendants failed to disclose their offers and sales of XRP or comply with any exemption from registration.
Coinbase halts trading of XRP
Coinbase announced yesterday that, according to an official blog post, it is halting all XRP trades on its cryptocurrency exchange (via Coindesk). Today, certain types of trade have been restricted, and the full suspension will take place at 10AM PT on January 19, 2021. The largest cryptocurrency exchange is Coinbase, and the suspension of a currency such as XRP naturally casts doubt on the future of the currency, long before the SEC litigation over it is settled.
Coinbase states that it has taken the decision to suspend XRP "in light of" the US Securities and Exchange Commission (SEC) suit brought against the original developer of XRP, Ripple. People will no longer be able to exchange XRP on Coinbase with the suspension in place, but they will still be able to deposit and withdraw from their XRP wallets.
After the announcement of coinbase, XRP falls about 31% on the trading platfrom on coinbase after their announcement that it will halt its trading.
With what's happening on XRP, expect that there will be more far greater fall to its price.
And I've seen this tweet by @AdamScorchan. (Not a user of read.cash. lol.)
There are rumors that SEC is actively doing its thing and eyeing for some crypto projects.
So who is next?
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