Ripple CEO Responds to Community Surrounding the SEC Lawsuit

Jafrin  |  Jan 8, 2021

On Jan. 8, in a Twitter thread, CEO of Ripple Brad Garlinghouse and his general counsel Stuart Alderoty attempted to answer five key questions surrounding the firm’s ongoing case with the U.S. Securities and Exchange Commission (SEC). In December 2020, SEC filed a $1.3 billion lawsuit against the CEO of Ripple and its co-founder Chris Larsen for allegedly selling XRP as unregistered securities.

Ripple CEO Responds to the SEC lawsuit

The CEO's answers ranged from the lack of settlement from the firm to whether Ripple paid crypto platforms to list XRP. Addressing the first topic, Garlinghouse indicated that the firm did attempt to settle with the Securities and Exchange Commission but to no avail. Although, he hinted at the possibility of settlement with a new administration.

Since the SEC lawsuit was filed, more than 25 platforms including Coinbase, Bittrex, OkCoin have halted transactions or delisted XRP.

Garlinghouse didn’t directly address whether Ripple ever paid platforms in listing XRP. However, he did clarify that XRP was one of the most liquid digital assets in the world and that 95% was traded outside the U.S. while calling it open-source and decentralized.

“Ripple has no control over where XRP gets listed, who owns it.”

Ripple Currently Drafting Its Response to the Lawsuit

Garlinghouse even indicated that he was disappointed that one of their biggest investors, Tetragon, who owns 1.5% of the company, had filed a related lawsuit. According to him, Tetragon took an unfair advantage out of the SEC lawsuit. However, he claims that the company’s other investors still had faith in Ripple.

Lastly, Garlinghouse indicated that Ripple was currently drafting its response to the lawsuit which it will file within weeks. He adds Ripple’s General Counsel Stuart Alderoty will be able to provide more information on it.

According to data from CoinGecko, XRP is still 44% down from 30 days ago, despite this week’s recovery of 48%.

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