Ripple’s CEO: What I DON’T want is for you to be concerned. We will overcome this, and we will prove it in court.
With the price of XRP falling more than 30% after the SEC’s new lawsuit against Ripple, CEO Brad Garlinghouse released a note. The CEO emphasized his willingness to win the legal dispute after the SEC accused Garlinghouse, and co-founder Chris Larsen, of raising capital by selling XRP as an “unregistered security” in violation of SEC regulatory laws.
In a recent letter, Garlinghouse tried to relieve his employees by saying that Ripple is on the right side of the legal fight after reading the $ 1.3 billion legal action from the SEC:
“What I DON’T want is for you to worry. We will overcome this, and we will prove our case in court. We have a phenomenal legal team and, as I said, we are on the right side of the law to begin with. Know, however, that the legal system is slow and that is only the beginning of a long civil process. ”
XRP price plummets more than 30%
The price of XRP fell by nearly 40%, with large holders selling, according to an analysis by Santiment Data. The sales move came when the SEC declared that Larsen and Garlinghouse made $ 600 million in profits from unrecorded sales of XRP tokens. Likewise, the federal entity claims that the XRP was sold in the “Bitcoin” style instead of the title.
XRP lost $ 7 billion of market capitalization, ending the high that started in November, and an intraday price of $ 0.35.
Cryptocurrency platforms remove XRP
It seems that the fall in the price of XRP was a disaster for the company, as not only does the number of holders appear to decrease daily. Small exchanges are now removing Ripple from their trading list.
Beaxy, an online cryptocurrency trading platform, removed XRP from its list after the SEC process. According to a statement, “XRP withdrawals will remain enabled until further notice”. US-based CrossTower is the second company to remove Ripple from its list. The list of platforms that suspend XRP trading and investments is joined by OSL and Bitwise and both have removed XRP from their platforms.
Although the note states that XRP remains the third largest cryptocurrency globally, it has been overtaken by Theter, now ranked 4th by market cap.
“The SEC is completely wrong in terms of the facts and the law and we are confident that, in the end, we will prevail over a neutral investigator. XRP, the third largest virtual currency with billions of dollars in trading every day, is a currency as the SEC considered Bitcoin and Ether, and is not an investment contract. ”Declared Andrew Ceresney, Debevoise & Plimpton
Unlike other blockchains, Ripple works with traditional fiat banks and systems. Launched in 2013, XRP was initially designed to be a “bridge currency” for financial institutions. The aim was to make cross-border transactions without third parties or fees that normally come with them.