Ripple has been making a lot of headlines these days due to the scandal with the SEC and their lawsuit against the company.
Dissolving the Grayscale XRP Trust
Now, it’s been revealed that Grayscale Investments is dissolving the Grayscale XRP Trust in the light of the U.S. Securities and Exchange Commission’s lawsuit against Ripple.
Grayscale, which is the largest digital currency asset manager in the world, said that it would liquidate the product and distribute the money to its shareholders.
“In response to the SEC’s action, certain significant market participants have announced measures, including the delisting of XRP from major digital asset trading platforms, resulting in the Sponsor’s conclusion that it is likely to be increasingly difficult for U.S. investors, including the Trust, to convert XRP into U.S. dollars, and therefore continue the Trust’s operations.”
Grayscale removed XRP from the Grayscale Digital Large Cap Fund last week, according to the latest reports coming from the online publication the Daily Hodl.
“The SEC’s lawsuit accuses Ripple, its chief executive officer Bradley Garlinghouse and co-founder Christian Larsen of raising over $1.3 billion by selling XRP in an unregistered digital securities offering,” the Daily Hodl notes.
In the wake of the lawsuit, at least 27 crypto organizations have now dropped support for XRP.
Ripple responds to XRP lawsuit
Back in December, Ripple addressed the lawsuit.
In a new blog post, CEO of Ripple, Brad Garlinghouse, released a statement from Ripple lawyer and former SEC enforcement Director Andrew Ceresney.
“The SEC is completely wrong on the facts and law, and we are confident we will ultimately prevail before a neutral fact-finder. XRP, the third-largest virtual currency with billions of dollars in trading every day, is a currency like the SEC has deemed Bitcoin and Ether and is not an investment contract. This case bears no resemblance to the initial coin offering cases the SEC has previously brought and stretches the Howey standard beyond recognition,” he said.