The SEC have also stated that XRP cannot be considered as a currency as it’s not backed by a central government and therefore not legal tender.īrad Garlinghouse previously stated that he was warned in that he was limited about what he could say about the allegation as the case is ongoing. Also, the SEC considers XRP a security, but Ripple maintains that XRP is electronic money. The allegation from the SEC versus Ripple is that two of its executives - Garlinghouse and Larsen - raised more than $1.3 billion in an unregistered securities by providing digital coin XRP. Ripple have previously stated that “countless innocent XRP retail holders with no connection to Ripple” and have “needlessly muddied the waters” for the industry. The parties were asked to file a joint statement on Feb, 15, 2021 through their legal counsels. Ripple Labs, CEO Bradley Garlinghouse and Executive Chairman and Co-founder Christian Larsen are named in the suit. District Court of the Southern District of New York. 22, 2021 per legal documents filed in the U.S. The lawsuit that has been filed by the Securities and Exchange Commission (SEC) versus digital payments firm Ripple is heading to virtual court on Feb.

That SEC lawsuit sure is scaring people away from Ripple.

Tetragon sues ripple