eToro is the latest exchange to suspend XRP trading after the United States Securities and Exchange Commission filed a lawsuit against its creators last week. The exchange will suspend currency trading on January 3 for US users.
EToro will ban XRP purchases as well as XRP conversions to other currencies in the eToro wallet, announced today. Your customers with existing XRP positions have until January 24 to close them. The suspension affects only US customers and does not prohibit HODLing or withdrawals.
“These changes were made in response to the SEC’s lawsuit against Ripple Inc. For now, the changes apply only to customers in the United States,” an eToro spokesman told Decrypt.
The complaint, filed by the US Securities and Exchange Commission last Tuesday, alleges that Ripple, as well as co-founder Chris Larsen and CEO Brad Garlinghouse, raised more than $ 1.3 billion by distributing XRP in non-bond sales registered.
Ripple periodically sells XRP to change the number of coins in public circulation. The SEC claims that these sales constitute investment contracts and that Ripple violated United States law by failing to register with the SEC first.
In response, Ripple claims that these sales do not constitute investment contracts and therefore it was not necessary to register with the SEC. “We are right and we will fight aggressively – and we will win – this battle in the courts for clear rules for the entire industry in the United States,” he said.
Garlinghouse said in a prepared statement: “The SEC is fundamentally wrong as a matter of law and fact”.
The lawsuit cut the price of XRP, which has lost 65% of its value since its CEO, Brad Garlinghouse, spread the word about the complaint last Monday.
eToro is the last exchange to suspend currency trading. Coinbase, Bitstamp, Bittrex and OKCoin are among those who intend to suspend currency trading next month.