Kataryna Habeliia December 23, 2020
Table of Contents [hide]
- 1 Ripple is under threat. What will happen to the XRP token?
- 1.1 Does a lawsuit put Ripple under the threat of its operations?
- 1.2 SEC lawsuits don’t always end with company closings
Ripple is under threat. What will happen to the XRP token?
New litigation has begun in the crypto space with the participation of the American SEC. We will tell you how this will affect the prospects of the project and its cryptocurrency in the future.
On December 23, the value of the XRP token on the BitXmi crypto exchange fell to a monthly low of $ 0.30. At the time of this writing, the altcoin is trading at $ 0.33, over the past day it has fallen in price by 30%. This came amid accusations of Ripple Labs Inc., its co-founder Chris Larsen and CEO Brad Garlinghouse of raising $ 1.3 billion by selling unregistered securities under the guise of XRP tokens. The corresponding claim was filed by the US Securities and Exchange Commission (SEC).
Following Ripple’s accusations, exchanges began delisting the XRP token. Over the past 24 hours, the cryptocurrency has been removed or operations have been suspended by the OSL, Beaxy, and CrossTower trading platforms. However, there is no talk of any global delisting, BitXmi experts are sure.
Does a lawsuit put Ripple under the threat of its operations?
The US Securities and Exchange Commission lawsuit puts Ripple at risk. In the lawsuit, the SEC asks the court not only to ban further activities with XRP but to return the profits from the sale of the cryptocurrency and pay a fine.
SEC lawsuits don’t always end with company closings
BitXmi experts noted that in the history of the SEC there are cases when their claims required companies to rethink their business model but did not lead to the closure of the company. So, for example, the recent case of Telegram, when the company tried to issue a token-asset Gram, trying to fall under the exception of securities legislation. In this case, the company was asked to return the money taken from the investors, which in general did not lead to the closure of the company or serious criminal liability. However, there are cases when companies and individuals were criminally liable, which accordingly led to the closure of the company, as was the case, for example, with AriseBank.
In this matter, the Ripple team should look at the EOS case. The project promptly resolved such a claim in a pre-trial format. Most likely, Ripple will have to pay a fine for those violations that the regulator saw, and the case will be closed. Now it is difficult to discuss the amount of the fine, but it will most likely amount to tens and perhaps hundreds of millions of dollars.
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