The SEC is suing Ripple. We analyze the conflict
Today, something happened that even the most forward-thinking analyst of the cryptoindustry could not expect. After all, the US Securities Commission (SEC) filed a lawsuit against one of the largest companies – Ripple. The state department is bringing forward quite serious charges, which consist of a criminal article for counterfeiting valuable assets and monetary fraud. Are the claims really valid? How does Ripple react? And, most importantly, what should ordinary investors do? Let’s understand all the details. Without further ado, let’s get started.
What exactly happened
First, the context of the situation should be discussed and described. Only after this can one speak with confidence about certain consequences of the forthcoming court proceedings. For our non-US readers, recall that the SEC is the Securities Commission. The organization is called upon to suppress fraud on the stock exchanges, is obliged to guarantee a favorable investment climate within the United States. In an effort to fulfill its own calling, the SEC is not afraid to speak out even against companies like Ripple. As part of today’s lawsuit, the department has filed an accusation of forging blocks of shares.
According to experts from the SEC, Ripple has been engaged in the illegal distribution of unregistered shares since its inception, that is, for more than 7 years. Based on the published materials, Ripple allegedly supplied non-existent assets to its own investors. And all this under the guise of XRP. According to the SEC, Ripple was able to defraud depositors in excess of a billion dollars. One billion and 300 million – that’s how much, according to the SEC lawsuit, Ripple “stole” from its own investors.
Company reaction
Note that real statistics show that Ripple mainly cooperated with retail investors. The number of shares sold to individuals far exceeds the amounts paid by representatives of the institutional investment prosecution. At the same time, SEC representatives note the machinations of the company’s chief director. We will remind, earlier the SEO company claimed that it does not sell its own savings and focuses on holding a corporate asset. However, judging by the case file, the SEO firm sells its assets at the earliest opportunity. Ripple denied this information and said that they are ready for any inspections and long trials. The company believes that this is a provocation by the administration controlled by President Trump. Who supposedly wants to harm the industry and complete their own work on a strong note. But what should a simple user do? Let’s figure it out.
What to do: listen to the SEC and sell assets? Or statements shouldn’t scare investors
The SEC really has a huge weight in the industry and the world of classical finance. And not only in the United States, but around the world. The opinion of this organization is heeded in every country, and their decision can indeed change the course of work of a particular company. But not Ripple. XRP has already earned the status of a reliable enterprise that is ready to live up to its good name. However, the beginning of the litigation still had a certain effect. Against this background, the value of the asset fell by almost 15%.
The drop in price, however, should not scare coin owners. Don’t rush to sell all your XRP savings. We are 95% sure that the SEC statements will not turn into a blockage and shame for Ripple. Otherwise, we will face the most grandiose deception of the modern cryptoindustry. But it’s up to you to decide. The main thing is to stay abreast of the latest developments in the cryptoindustry. Follow the world of Blockchain and finance with us. We publish only high-quality, interesting material. Thanks for attention. Good luck!
