On December 22, the US Securities and Exchange Commission called the SEC officially announced that it had filed a lawsuit against Ripple Labs Inc. and two of its officers, unregistered, Accused of passing on ongoing digital asset securities. The offering raised more than $ 1.3 billion. These two officers are also important securities holders.
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Accused of violating federal securities law registration requirements:
According to the SEC allegations, Ripple's co-founder, the board's executive chairman, former CEO Christian Larson, and current CEO Bradley Garlinghouse are the company's businesses raising funds. Ripple began raising funds in 2013 by selling digital assets called XRP to investors in the United States and around the world. Ripple distributed billions of coins in exchange for non-cash considerations such as labor and market making services.
In addition to organizing and promoting the Ripple sale used to fund the company's business, Larson and Garlinghouse also made non-registered private XRP sales totaling approximately $ 600 million, according to the complaint. The complaint alleges that the defendants failed to register their offers and sales, nor did they satisfy any exemption from registration in violation of the registration requirements of the Federal Securities Act.
"Retail investors, wishing to benefit from initial public offerings (IPOs), including broad distribution and access to secondary trading markets, must comply with federal securities laws and register the offer until the registration exemption is implemented.
