Ripple Labs founders Christian Larsen and Bradley Garlinghouse have heard accusations from the US Securities and Exchange Commission that they have made unregistered sales of the Ripple cryptocurrency in violation of investor protection laws.
According to the Securities and Exchange Commission, Larsen and Garlinghouse were to offer unregistered digital assets worth about $ 1.3 billion. But both the founders of Ripple and the cryptocurrencies of the same name deny the charges. “It is shocking. It’s an attack on the entire cryptocurrency industry and American innovation, “Garlinghouse told Fortune magazine.
According to him, Ripple cannot be considered an investment asset, but a currency. Therefore, it is not subject to obligations such as securities. “The Ministry of Justice and the relevant office of the Ministry of Finance already in 2015 said that the Ripple is a virtual currency. No other country has classified Ripple as a security, “added Garlinghouse.
However, the Securities and Exchange Commission insists that Ripple is an investment asset and should have been so registered before Ripple Labs began offering it for trading. Ripple’s market capitalization exceeds $ 20 billion and is currently the world’s third largest cryptocurrency. Its origins date back to 2012. Ripple lost almost 16 percent of its value in a single day in response to the Commission’s opinion.