SEC has taken legal action against Ripple as well as its CEO, Brad Garlinghouse,and co-founder Christian Larsen.
In charges filed today in federal district court in Manhattan, the commission is alleging that the XRP token is classified as a security and is accusing Ripple and the two executives of raising more than $1.3 billion through an “unregistered, ongoing digital asset securities offering” to investors beginning in 2013.
The SEC said that Garlinghouse and Larsen failed to register XRP when it served as an investment in Ripple and to enrich the pair personally. The firm and its two leaders could face disgorgement of their gains as well as civil penalties.
XRP price plunges 21% in two days as SEC targets Ripple
Ripple Labs and its initial and current CEOs, Christian Larsen and Bradly Garlinghouse, respectively, for raising more than $1.38 billion through the sale of XRP since 2013.
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