In a surprising turn of events, the longstanding civil lawsuit against Ripple’s executives, Brad Garlinghouse and Chris Larsen, has taken an unexpected twist. The United States Securities and Exchange Commission (SEC) has declared its intention to dismiss all claims against them. This move, termed by Ripple’s chief legal officer as a “surrender” rather than a settlement, marks a significant development in the case.
SEC to dismiss case against Ripple execs
October 20th, 2023
The SEC’s legal actions against Ripple commenced in December 2020, primarily centered around the sale of XRP tokens, which the commission contended were securities. However, in a pivotal ruling in July, a federal judge determined that XRP did not qualify as a security when sold to retail investors.
The decision to drop charges against Garlinghouse and Larsen, just months before a scheduled trial in April 2024, has left many puzzled. Some legal experts speculate that this move might indicate the SEC’s intention to appeal the court’s verdict on XRP’s security status, a course of action previously slated for after the trial’s conclusion.
Meanwhile, the SEC continues to pursue other high-profile cases within the crypto sphere. These include legal battles involving former Celsius CEO Alex Mashinsky and former FTX CEO Sam Bankman-Fried, with trial dates set for September 2024 and October 26, respectively. Additionally, the commission has filed civil suits against major crypto exchanges Binance and Coinbase.