wordpress blog stats
Connect with us

Hi, what are you looking for?

SEC sues crypto firm Ripple over $1.38 billion unregistered securities sale

The Securities and Exchange Commission (SEC) of the United States has filed a lawsuit against Ripple Labs Inc, and two of its executives, over the unauthorised sale of $1.38 billion securities. Ripple is one the leading crypto currency and blockchain firms that has developed a real-time gross settlement system, currency exchange and remittance network. The complaint filed with the SEC alleges that Christian Larsen, the company's co-founder and executive chairman of its board, and Bradley Garlinghouse, the company's current chief executive officer, began selling digital assets known as XRP back in 2013 to investors worldwide. These sales were unregistered and were raised in exchange for non-cash expenses like labour and market-making services. Further, Larsen and Garlinghouse also effected personal unregistered sales of XRP totalling approximately $600 million, it said. "We allege that Ripple, Larsen, and Garlinghouse failed to register their ongoing offer and sale of billions of XRP to retail investors, which deprived potential purchasers of adequate disclosures about XRP and Ripple's business and other important long-standing protections that are fundamental to our robust public market system," said Stephanie Avakian, Director of the SEC's Enforcement Division. XRP, Ripples' crypto token, has a market value fell significantly on Wednesday from $21.16 billion to $16.75 billion as of mid-day December 23, according to CoinMarketCap. According to the complaint, Ripple engaged in an illegal securities offering from 2013 to the present and since XRP acts as “investment contract”, the company has to comply under the federal securities laws. "Over a years-long unregistered offering…

Please subscribe/login to read the full story.
Written By

Reports on banking, payments, fintech and crypto-curencies. Additional reporting on media regulations, data protection and other areas.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

Studying the 'community' supporting the late Sushant Singh Rajput (SSR) shows how Twitter was gamed through organized engagement

News

Do we have an enabling system for the National Data Governance Framework Policy (NDGFP) aiming to create a repository of non-personal data?

News

A viewpoint on why the regulation of cryptocurrencies and crypto exchnages under 2019's E-Commerce Rules puts it in a 'grey area'

News

India's IT Rules mandate a GAC to address user 'grievances' , but is re-instatement of content removed by a platform a power it should...

News

There is a need for reconceptualizing personal, non-personal data and the concept of privacy itself for regulators to effectively protect data

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ