Ripple is struggling these days in what seems to be the most significant lawsuit related to crypto.
The other day, we were revealing that Ripple is about to face a massive SEC lawsuit.
Ripple said that it would defend itself against a lawsuit from the SEC that is claiming the company violated investor protection laws when they sold XRP.
“The suit, which hasn’t yet been filed, would be one of the highest-profile SEC actions against a cryptocurrency pioneer, just as the regulator’s chairman is departing at the end of the Trump administration,” according to the prestigious publication.
The online publication the Daily Hodl notes that Ripple offers its initial response to the lawsuit.
Just in case you missed this, the SEC alleges that Ripple sold XRO illegally as an unregistered security.
Brad Garlinghouse releases a statement
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.
Garlinghouse said that he and Chris Larsen, which are named in the SEC’s complaint, had the option to settle with the SEC but chose not to do it.
“Chris and I had the option to settle separately. We could do that, and it would all be behind us. NOT happening. That’s how confident Chris and I are that we are right. We will aggressively fight – and prove our case – through this case we will get clear rules of the road for the industry here in the U.S. We are not only on the right side of the law, but we will be on the right side of history.”
We suggest that you check out the original blog post to find out all the details.