Ripple (XRP) to the wall – SEC hands it down to court
Last nail in the coffin for XRP? – Since the Securities and Exchange Commission (SEC) stumbled upon Ripple Labs and its XRP token, bad news has followed an almost daily rate. This time, it is the accusation of the US financial policeman that becomes clearer.
The 2 Ripple executives on the SEC grill
The Ripple vs SEC affair never ends. Indeed, on February 18, the financial regulator made a modification to its complaint against Ripple, as can be seen in this document filed with the Court of the Southern District of New York.
He specifies in particular his accusations against Christian Larsen , the executive chairman of Ripple, and Bradley Garlinghouse , its current CEO. The SEC implicates insider trading from the second page of the document:
“Because Ripple has never filed a registration statement [with the SEC], it has never provided investors with the important information that hundreds of other issuers each year include in their statements when they apply. public investments. Instead, Ripple created such a big information aspiration, that Ripple and the 2 insiders who had the most control – Larsen and Garlinghouse – were able to sell XRP in a marketplace that only had the information that the defendants had chosen to share [to the public] on Ripple and XRP. “
SEC won’t release pressure on Ripple
The regulatory authority is even becoming urgent : it notes that the 2 defendants not only still hold „considerable quantities“ of XRP, but also continue today to use this „information asymmetry“ with aggrieved investors to their own personal gain .
In the table below (on page 16), we can see that Christian Larsen would have sold around 1.7 billion of his XRP and Bradley Garlinghouse, approximately 357 million of his. The leaders and their company would therefore have illegally sold nearly 14.6 billion units of their token.