Ripple CEO speaks out on SEC’s billion-dollar lawsuit
Ripple CEO Brad Garlinghouse has commented on his company’s current legal dispute with the U.S. Securities and Exchange Commission (SEC). In a tweet, he called the billion-dollar lawsuit „baseless allegations.“ Meanwhile, the problems for the FinTech company are not abating.
The Ripple legal battle is entering the next round. In a ten-part tweet, CEO Brad Garlinghouse commented on the allegations made by the Securities and Exchange Commission (SEC). He described the accusations made by the financial authority as unfounded. However, the Ripple CEO did not want to go into detail. Ripple has no control over where XRP is listed because the project is „open source and decentralized“. When asked why the company has been so quiet with the public so far, Garlinghouse referred to legal reasons. Behind the scenes, however, they are working at full speed.
Garlinghouse criticized, among other things, the „sometimes contradictory attitudes“ of the various tax authorities. He went on to say:
We have drifted from an initial lack of regulation to regulatory chaos in the United States. That’s why regulation by enforcement agencies has such a poor public reputation. With the new administration, we expect #DCEA to be reinstated – sensible legislation that provides clarity for the entire industry.
Although crypto year 2021 has started well for most currencies, Ripple’s future remains uncertain so far. As recently as late December last year, the SEC brought forth allegations against Ripple, accusing the FinTech company of trading unregistered securities. In the wake of this, the start-up is now facing fines of 1.3 billion US dollars. As a result, the XRP price plummeted almost to the bottomless pit. Currently, the price is at 0.33 US dollars (as of January 8).
Moreover, Ripple now has to fight a war on several fronts at the same time. After the complaint of the SEC it hails quasi further negative messages. Thus, the largest U.S. crypto exchange by Bitcoin Champion review stopped trading all XRP trading pairs, as also reported BTC-ECHO. The San Francisco-based company cited the Securities and Exchange Commission’s lawsuit as the reason.
Another setback for Ripple followed on January 5, when Grayscale, the world’s largest digital asset manager, announced that it would liquidate its own XRP fund. Moreover, the cryptocurrency is now struggling with its own investors. Thus, the financial company Tetragon has filed a lawsuit against Ripple. Tetragon had invested in Ripple in 2019 with 200 million US dollars in the Series C financing round. The investment was originally intended to lay the foundation for an IPO. Accordingly, Ripple is now to buy back the preferred shares issued to Tetragon.
Garlinghouse gives a fighting performance
According to Brad Garlinghouse, investor faith in Ripple remains strong nonetheless. On Twitter, he said:
Yes, we have real shareholders. That’s how you own Ripple stock – by buying our stock, not by buying XRP. We are disappointed that Tetragon (which owns 1.5 percent of Ripple) is trying to gain an unfair advantage through the SEC’s allegations.
At the end of the article, the CEO expresses confidence. There will be no giving up the fight, he said. Lastly, he emphasized that they will be on the right side of history and are looking forward to the day in court. In addition, the company is looking forward to working with the future SEC under US President-elect Joe Biden.