The allegations of SEC states that the executives of Ripple have misled the investors as well as manipulated the coin price of XRP by creating a vacuum of information.
The Securities & Exchange Commission of the United States of America has accused that Christian Larsen along with Bradley Garlinghouse, executives of Ripple Labs, have manipulated the price of XRP by way of ramping the price up or by slowing down the sales of the coin depending on the market conditions.
Accusations Against XRP
The complaint was amended and filed again on the 18th of February. The plaintiff of The Securities & Exchange Commission of the US had repeatedly informed their stance for Ripple Labs, Brad Garlinghouse as well as Christian Larsen who were considered to have violated the securities laws for the sales of the XRP coins from the year 2013.
The complaint stated that from 2013 till the current day, the defendants have sold more than 14.6 billion XRP tokens in exchange for cash and other consideration that is valued at more than $1.38 billion USD in order to fund the operation of Ripple and enrich both Larsen and Garlinghouse.
The complaint also says that Ripple had received legal advice in the year 2012 regarding their coin being able to represent a safe offering but unfortunately they ignored that advice.
From the financial perspective, the strategy had worked since Ripple successfully managed to raise a whopping $1.38 million in the least since 2012.
Another similar incident happened in 2016 when defendants were coerced to adjust the total sales target for the purpose of stabilizing or increasing the struggling prices of coins.
The asymmetrical information made by these defendants are still existing and enables XRP sell-off.