The U.S. Securities and Exchange Commission (SEC) sued Garlinghouse, Chairman Chris Larsen, and Ripple for allegedly selling $1.3 billion unregistered securities of XRP since 2013. The federal system alleged that these funds were to be used for its operations.
On a Twitter rant, Garlinghouse mentioned the suit against the company in a thread. Although with the case ongoing, he didn’t reveal much. He said that they tried, and although he couldn’t specifically talk about it, they tried and will continually try to resolve it with the administration.
This was followed by the SEC’s victorious cases against messaging apps Telegram and Kik. They alleged that the firms violated legal bindings by presale of coins offered before launching grams. However, Telegram shut down the program before it went live.
Garlinghouse’s Confession About Ripple:
The first hearing is set to take place later next month, with Ripple denouncing the charges. The company further said that their response to the allegations by the regulatory agency is on its way. Garlinghouse said that it didn’t have any control over XRP’s listings. But he admitted to providing first movers with a bonus to consume the on-demand liquidity product, which he stated was lawful.
The case draws a parallel to the Block.one controversy. Back in 2019, the company settled its charges with the SEC by paying a penalty amount as a settlement. This allowed Block.one to continue their trade, with the form of EOS coins.
Several exchange firms delisted Ripple’s shares. Though, Kraken, a major US platform, said that it was yet in the process of reviewing the matter and would take a decision accordingly.