XRP Crashes 29% Below $0.35 As SEC Slaps $1.3 Billion Lawsuit on Ripple

Bhushan Akolkar
December 23, 2020
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Brad-Garlinghouse

It’s a bloodbath for XRP investors as the world’s third-largest cryptocurrency tanks 29% moving below $0.35 levels. While the entire cryptocurrency market is recovering is facing a massive sell-off after the U.S. Securities and Exchange Commission (SEC) slapped a $1.3 billion lawsuit for selling XRP as unregistered securities.

This was very much expected as Ripple CEO Brad Garlinghouse has already predicted a day before that the regulator was coming after them. Garlinghouse has accessed SEC Chairman Jay Clayton saying:

Clayton did this with one foot out the door. Rather shamefully, he has decided to sue Ripple, and leave the legal work to the next chairman. I think we have to stand up for all of crypto—and not let the SEC bully the entire industry. Were going to be on the right side of history”.

The SEC lawsuit particularly names Ripple co-founder Chris Larsen and CEO Brad Garlinghouse. The complaint filed by the SEC alleges that:

“Ripple raised funds, beginning in 2013, through the sale of digital assets known as XRP in an unregistered securities offering to investors in the U.S. and worldwide. Ripple also allegedly distributed billions of XRP in exchange for non-cash consideration, such as labor and market-making services”.

Stephanie Avakian, Director of the SEC’s Enforcement Division noted:

“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.”

Ripple Finds Itself on A Wrong Footing

In a document published on Monday, Ripple mentioned Bitcoin (BTC) and Ethereum (ETH) are “Chinese-controlled”. This was enough to trigger the crypto community with Vitalik Buterin taking the lead and calling XRP as shitcoin. Bitcoin evangelist and entrepreneur Anthony Pompliano distance himself from his support to XRP.

Ripple continues to receive flak even from other members of the crypto community. Some are now even calling XRP as a scam.

However, in a letter to XRP investors, Brad Garlinhouse explains how Ripple has stood for innovation and emerged as a global payments company since its inception in 2013.

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.