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

Published December 23, 2020 | Updated December 23, 2020

Brad-Garlinghouse

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

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.

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Bhushan Akolkar 432 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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