Saturday, July 20, 2024

The U.S. Securities and Exchange Commission (SEC) has withdrawn all allegations against Ripple’s top executives, CEO Brad Garlinghouse and co-founder Chris Larsen. In a significant turn of events, Ripple has characterized this development as the SEC’s surrender rather than a negotiated settlement.

Dismissal of SEC’s Lawsuit Against Ripple Executives

The SEC’s lawsuit against Ripple’s CEO Brad Garlinghouse and co-founder Chris Larsen has been officially dismissed. This decision was recorded in a filing with the U.S. District Court for the Southern District of New York. The document jointly submitted by the SEC, Ripple, Garlinghouse, and Larsen stated:

“It is now stipulated and agreed … that the claims alleged by Plaintiff Securities and Exchange Commission against Defendants Bradley Garlinghouse and Christian A. Larsen … are hereby dismissed in their entirety, with prejudice and without costs or fees to either party.”

The SEC had accused these executives of “aiding and abetting Defendant Ripple Labs Inc.’s violations” in relation to Ripple’s XRP sales in ‘Institutional Sales.’

In a letter addressed to District Judge Analisa Torres, the SEC informed the court about the agreed-upon dismissal of its pending claims against Garlinghouse and Larsen. The SEC mentioned that this voluntary dismissal eliminates the need for the previously scheduled trial and renders moot the October 2, 2023, scheduling order.

“The SEC and Ripple intend to meet and confer on a potential briefing schedule with respect to the pending issue in the case — what remedies are proper against Ripple for its Section 5 violations with respect to its institutional sales of XRP,” the letter continues. The SEC requested until November 9 to propose such a schedule to the court or, in the event of disagreement between the parties, to seek a court-mandated briefing schedule.

Earlier this month, Judge Torres rejected the SEC’s attempt to appeal her ruling regarding XRP. SEC Chairman Gary Gensler expressed disappointment in July over the XRP ruling’s implications for retail investors.

Ripple CEO’s Response

Ripple CEO Brad Garlinghouse conveyed his thoughts on the situation through the X social media platform, stating, “In all seriousness, Chris and I (in a case involving no claims of fraud or misrepresentations) were targeted by the SEC in a ruthless attempt to personally ruin us and the company so many have worked hard to build for over a decade.” He added, “The SEC repeatedly kept its eye off the ball while secretly meeting with the likes of SBF [Sam Bankman-Fried, former CEO of the collapsed crypto exchange FTX] — failing again and again to protect U.S. consumers & businesses. How many millions of taxpayer $ were wasted?! Feels good to finally be vindicated.”

Ripple’s Chief Legal Officer’s Statement

Ripple’s Chief Legal Officer, Stuart Alderoty, expressed his perspective on the matter, stating on X:

“The SEC made a serious mistake going after Brad & Chris personally — and now, they’ve capitulated, dismissing all charges against our executives. This is not a settlement. This is a surrender by the SEC.”

Alderoty further elaborated on Ripple’s recent legal victories, noting, “That’s 3 consecutive wins for Ripple including the July 13 decision ruling that as a matter of law XRP is NOT a security, the Oct 3 decision denying the SEC’s bid for an interlocutory appeal, and now this.”

Market Reaction

Following the SEC’s dismissal of the lawsuit against Ripple executives, the price of XRP experienced a notable increase of nearly 6%, followed by a slight retracement. As of the current moment, the price of XRP hovers around $0.51.

The implications of the SEC’s decision and its impact on the cryptocurrency market remain topics of interest. What are your thoughts on the SEC dropping the lawsuit against Ripple’s executives? Share your opinions in the comments section below.

Frequently Asked Questions (FAQs) about Lawsuit Dismissal

What was the outcome of the SEC’s lawsuit against Ripple executives?

The SEC dropped all charges against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen, leading to the dismissal of the lawsuit.

How did Ripple characterize the SEC’s decision to drop the charges?

Ripple characterized it as the SEC’s surrender rather than a negotiated settlement.

What were the allegations against the Ripple executives?

The SEC accused them of aiding and abetting Ripple Labs Inc.’s violations in relation to XRP sales in ‘Institutional Sales.’

What legal steps followed the dismissal of charges?

The SEC and Ripple planned to discuss potential remedies against Ripple for Section 5 violations related to institutional XRP sales.

What prior legal developments were mentioned in the article?

The article mentioned Judge Torres’s rejection of the SEC’s appeal and Ripple’s previous legal victories.

How did the cryptocurrency market react to the lawsuit dismissal?

The price of XRP saw a nearly 6% increase following the lawsuit’s dismissal, followed by a minor retracement.

What did Ripple’s CEO and Chief Legal Officer say about the SEC’s actions?

Brad Garlinghouse criticized the SEC’s attempt to personally target him and Chris Larsen. Stuart Alderoty emphasized that it was the SEC’s surrender.

What is the current price of XRP?

As of the article’s writing, the price of XRP was approximately $0.51.

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