![]() Crypto exchanges completely and permanently delist XRP in the US. Ripple pays a hefty fine (not just a tap on the wrist) and becomes a SEC-reporting company like Apple or Amazon and the company/management teams need to transparently declare any sale of XRP and comply with security laws, just like Jeff Bezos when he sells Amazon shares. The Ripple use case for XRP's, ODL, fails completely in the US but continues its journey (or maybe not) in other countries around the world. XRP is irremediably deemed a Digital Asset Security in the US. Ripple Labs didn’t respond to a request for comment at the time of writing.Let's project ourselves in a world where Ripple loses the lawsuits against the SEC and Tetragon. Meanwhile, Tetragon Capital is suing Ripple to redeem the Series C preferred stock owned by Tetragon, and is seeking to block Ripple from using any cash or other liquid assets until the payment is made. In January, Grayscale Investments-the world’s largest digital currency asset manger-reportedly began dissolution of its Grayscale XRP Trust. Ripple was recently valued at $10 billion following a funding round, but there are signs of mounting unease among Ripple’s investors. But the SEC cites Ripple’s “On Demand Liquidity” solution, which leverages XRP as a bridge between two currencies to free up capital, as an example in the suit. Ripple has scored major business wins with international banks and financial institutions, including Santander and MoneyGram. Although the SEC acknowledges XRP II as Rip-ple’s wholly owned subsidiary, it criticizes a significant overlap in business operations. Ripple vehemently denies the allegations, and has long claimed that Ripple, the company and XRP, the cryptocurrency, are separate entities. “We allege that Ripple, Larsen and Garlinghouse failed to register their ongoing offer and sale of billions of XRP to retail investors, which deprived potential purchasers of adequate disclosures about XRP and Ripple’s business and other important long-standing protections that are fundamental to our robust public market system,” said Stephanie Avakian, the SEC’s director of enforcement, in a statement. Following the SEC announcement in late December, XRP’s price more than halved on several digital currency exchanges, with US clients moving quickly to halt trading in the cryptocurrency. News of the action pummeled the price of the XRP token at a time of surging demand for cryptocurrencies by institutional investors. Ripple used the money to fund its operations, according to the SEC. ![]() ![]() The US regulator alleges that the San Francisco–based fintech raised $1.3 billion over a seven-year period, and names Ripple Chairman Chris Larsen and the company’s current CEO, Bradley Garlinghouse, in the suit. The US Securities and Exchange Commission has charged Ripple Labs and two executives with violating federal securities laws by selling XRP cryptocurrency to investors around the world in an unregistered securities offering.
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