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Tag: Ripple Labs

  • Ripple (XRP) coin lawsuit update: No Judgement But More Blows

    Ripple (XRP) coin lawsuit update: No Judgement But More Blows

    The US Securities Exchange Commission filed a lawsuit against Ripple Labs in December 2020. The SEC alleges that the firm has been involved in the sale of XRP as an unregistered security. The heated legal battle ensued does not appear to be reaching a judgment any time soon with both parties delivering blows after blows.

    Ripple Labs to call ex-SEC director

    In the most hyped legal battle of the year, Ripple Labs has achieved yet another break with its motion to call the previous director of the SEC Corporate Finance division, William Hinman, to testify. The counsel of Ripple Labs believe that Hinman may have knowledge of the SEC’s policies regarding digital assets which may prove to be crucial for the case. However, the motion may be quashed by the SEC as it has plans to counter it. The SEC has requested a discussion with the presiding judge Sarah Netburn regarding quashing the motion as the commission believes, if granted, the motion will set precedent for the company to dispose of high-ranking government officials.

    XRP Technical Analysis

    Ripple (XRP) fell brutally as the lawsuit was announced. The cryptocurrency recovered eventually during the bull run of 2021 with updates from the lawsuit proving to be irrelevant to the price movements. Ripple (XRP) is on a strong downtrend since the market crashed. The cryptocurrency currently stands at a price level of $0.67. The price of XRP coin has been increasing in the daily timeframe while the trading volume has also been increasing rapidly.

    The market sentiment for Ripple (XRP) continues to be bearish. Out of the total twenty-six technical indicators, fifteen are standing at a sell position with nine neutral indications and only two bullish indicators of buy. The oscillators are mainly neutral while the moving averages suggest a strong downtrend.

  • Another $420 million transferred to Ripple’s former CTO

    Another $420 million transferred to Ripple’s former CTO

    Ripple Labs has sent Ripple co-founder and former Chief Technology Officer Jed McCaleb 408 million XRP worth $420 million. This is another one of the monthly XRP payments that Ripple Labs have been making to the co-founder since September 2020.

    Jed McCaleb started selling his XRP immediately with 16 million tokens being sold already. The former CTO has established a pattern. He chooses a certain amount of XRP and continues to dump it every day, seven days a week. It is expected McCaleb will dump 16 million XRP every day for the whole week. Currently, Jed McCaleb has around 633 million XRP in his wallet. The holdings of McCaleb are expected to deplete by the end of August at the rate he is getting rid of it.

    The former CTO had left Ripple Labs amidst internet conflicts. After exiting the firm, McCaleb tried to dump all of his XRP holdings – which would have had a drastic impact on the cryptocurrency’s price. Ripple Labs was quick to stop the co-founder through a lawsuit. The current CTO David Schwartz had estimated McCaleb’s XRP holdings to be around one billion in 2018.

    Meanwhile, Ripple Labs is amidst a lawsuit with the United States Exchange Commission. The SEC has alleged that Ripple Labs has raised funds through the sale of XRP as an unregistered security. Ripple Labs refute the claims and both the parties have been engaged in a legal battle ever since. In a recent move, the counsel of Ripple Labs is seeking documents from 16 foreign offshore exchanges to prove that the executives Chris Larsen and Brad Garlinghouse have not violated the Securities Act.

    Ripple Labs has been actively deliveries blow to the SEC as the SEC’s motion to wave Ripple Lab’s attorney-client privilege was denied while Ripple labs was allowed access to the internal memos of the SEC to prove the SEC’s bias against XRP.

  • SEC v. Ripple Labs – Ripple Labs about to deliver a fatal blow

    SEC v. Ripple Labs – Ripple Labs about to deliver a fatal blow

    The SEC had amended its complaint from the sale of XRP as unregistered security to the US public to public investors all over the world. Ripple Labs has filed a motion in response to requesting documents from offshore exchanges which the council believes will prove that the executives of Ripple Labs Chris Larsen and Brad Garlinghouse did not violate Section 5 of the Securities Act.

    The documents have been requested from iFinex, Bitforex, Bithumb, Bitlish, BitMart, AscendEX, Bitrue Singapore, Bitstamp, Coinbene, HitBTC, Huobi Global, Korbit, OKEx, Upbit Singapore, and ZB Network Technology with assistance from authorities of the Cayman Islands, Singapore, South Korea, Hong Kong, UK, Malta, and Seychelles.

    The United States Securities Exchange Commission vs. Ripple Labs may be one of the most anticipated legal battle in the crypto sphere. The SEC decided to go head-to-head with the organization behind the seventh largest cryptocurrency in the market in December of 2020. The SEC alleged that Ripple Labs has issued millions worth of XRP as unregistered tokens. While Ripple Labs denies the allegation, the verdict in the lawsuit will decide the future of XRP.

    Both the parties have been active on the front with motions going to the presiding judge left and right. While it is too early to foresee which party may come out victories, team Ripple had been cheering on the blows that Ripple labs have managed to land on the SEC.

    The SEC had filed a motion to discovery of the subjective opinion of Ripple Labs during conversations with the council. However, the motion was denied by the judge magistrate Sarah Netburn. While the judge has granted Ripple Labs access to internal memos of the SEC in order to support its claim that the SEC is biased against XRP.

  • Another punch to SEC in the battle of the year

    Another punch to SEC in the battle of the year

    The United States Securities and Exchange Commission sought to access Ripple Lab’s concerns regarding the status of XRP as an unregistered security. The SEC reached out to the magistrate judge Sarah Netburn to allow SEC access to the subjective opinion of SEC discussed with attorneys regarding the matter. The SEC believes it will grant them will support their case.

    On May 7th, the SEC had asked the presiding judge for access to documents protected by attorney-client privilege to find out Ripple Labs opinion on the subject matter. However, the SEC was not successful in its efforts. The magistrate judge Sarah Netburn made her filing public citing the attorney-client privilege has not been waived; hence, the SEC cannot access the legal advice sought by Ripple Labs on the security status of XRP. Ripple Lab’s opinion on XRP is said to be not relevant to the “Fair Notice” defense.

    In a counter move, Ripple Lab’s counsel has also sought something similar. The Labs has asked judge Netburn to be allowed access to SEC’s internal memos regarding cryptocurrencies. The firm believes that the SEC is biased against the SEC and its internal discussions on cryptocurrencies may reveal that. The judge has granted the request “in large part”.

    The SEC vs. Ripple Labs lawsuit started in December of last year when the SEC filed a lawsuit alleging Ripple Labs has been issuing XRP as an unregistered security. The firm has effectively denied the allegations and the legal battle has ensued. Ripple Labs believe the SEC is prejudiced against XRP. Some have even called SEC’s allegations and the lawsuit as completely baseless. XRP tumbled drastically as the lawsuit was announced but it has since recovered. At the time of writing, the XRP coin stands at a price level of $0.9.

  • Ripple’s plans to go public still intact

    Ripple’s plans to go public still intact

    CEO of SBI Group – the largest outside shareholder of Ripple – believes that Ripple Labs is set to go ahead with its plans of going public once the legal battle with SEC is over. The CEO Yoshitaka Kitao claimed that CEO Brad Garlinghouse and Chairman Chris Larsen revealed their plans to take the company public in Wednesday earnings presentation call.

    The CEO of Ripple Labs, Brad Garlinghouse, had hinted towards the company initial public offering while speaking at the World Economic Forum last year but before any developments could be made in this direction, the SEC derailed all plans of Ripple Labs. And according to the CEO of the Japanese financial behemoth, the plans are still intact once Ripple Labs settles the SEC lawsuit.

    Ripple Labs found itself entangled with the Securities and Exchange Commission in December 2020. The legal battle has dragged on ever since with no indication of an end anytime soon. The firm’s cryptocurrency, XRP, took a hard hit because of the lawsuit; however, things appear to have changed as XRP picked up the pace again.

    Ripple Labs is confident they will merge victorious as the prosecution’s argument lies in the fundamental differences between Ripple and Bitcoin or Ethereum. The legal counsel of Ripple Labs has been adamant that no such fundamental differences exist between the cryptocurrencies which make the whole case of SEC baseless.

    Ripple Labs has also bagged minor victories throughout the legal battle like the approval of a motion to grant Ripple Lab’s SEC’s discovery documents of Bitcoin and Ethereum. However, how useful the documents will prove to be is yet to be seen. Nonetheless, the firm remains steadfast in its plans of going public as it optimistically hopes to defeat the SEC in the legal battle.

  • Lawsuits Piling Up: SEC Going After The Crypto Market

    Lawsuits Piling Up: SEC Going After The Crypto Market

    With the adoption of cryptocurrencies on the rise, governments throughout the world has started paying attention to the regulation of cryptocurrencies – or the lack thereof. While the stance of the Biden administration on the cryptocurrency market is unclear, the new expected head of the US Securities & Exchange Commission Gary Gensler is expected to resolve the issue to crypto regulation being well-versed in the block chain technology.

    The SEC’s crackdown on the crypto market appears more of a reality each day as the Commission first went after Ripple Labs and now LBRY. LBRY is a Youtube competitor based on the blockchain. The content sharing and publishing platform is completely decentralized and, hence, owned by its users. In the lawsuit registered last week, SEC alleged that LBRY Inc. used the LBRY credit tokens to fund the project without registering them as securities first. The CEO denied the allegations and questioned the repercussions of the SEC’s actions. According to the CEO of LBRY Inc. Jeremy Kauffman, the lawsuit put every block chain at risk.

    Mati Greenspan, the founder of Quantum Economics, has also warned the crypto community of the intentions of the SEC in a newsletter. Greenspan states the lawsuit can threaten the future of the whole cryptocurrency market:

    “a negative ruling here could make it easier for them to kill off any project which utilizes crypto tokens. DeFi, non-fungible tokens (NFTs), smart contracts, and just about everything except possibly stablecoins would potentially be on the chopping block.”