Ripple CEO Warns SEC May Sue Company Over XRP Sales

The U.S. Securities and Exchange Commission (SEC) intends to sue Ripple over its sale of XRP, CEO Brad Garlinghouse said Monday.

According to Fortune, the lawsuit will be filed in the near future, though no specific date has been provided yet. Ripple cofounder Chris Larsen and Garlinghouse will be named defendants alongside the firm, according to Garlinghouse.

Ripple is already being sued by XRP investors in a putative class-action lawsuit, on claims that the company said XRP’s price would rise.

The move is reminiscent of how messaging platform Kik announced the SEC would file suit against it for raising $100 million to build Kin. Kik later settled the case.

According to Messari, Ripple has sold about $1.2 billion in XRP over the years.

Spokespeople for Ripple and the SEC did not immediately return requests for comment.

This is a developing story. Check back for updates.

UPDATE (Dec. 22, 2020, 01:20 UTC): Updated with additional context.

Comments are closed, but trackbacks and pingbacks are open.