Cryptocurrency company Ripple to face SEC suit over XRP sales

The Wall Street Journal

Published: Dec. 22, 2020 at 12:27 p.m. ET

The federal agency claims the company violated investor-protection laws when it sold the bitcoin-like digital asset

Ripple CEO Brad Garlinghouse speaks onstage at TechCrunch Disrupt SF in 2018 in San Francisco, California. Steve Jennings/Getty Images for TechCrunch

Ripple Inc. said it will defend itself against a lawsuit from the Securities and Exchange Commission that claims the company violated investor-protection laws when it sold a bitcoin-like digital asset called XRP.

The suit, which hasn’t yet been filed, would be one of the highest-profile SEC actions against a cryptocurrency pioneer, just as the regulator’s chairman is departing at the end of the Trump administration. The SEC over the past few years has brought and mostly won civil lawsuits alleging startups trampled securities laws when they raised money by selling cryptocurrencies.


Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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