- SEC filed a case on Ripple payment company for Putting up $1.3 billion in unregistered securities sales.
According to the latest media reports, the Bitstamp exchange has halted all sorts of trading in the form of XRP. The upcoming time of XRP may be determined by the new legal cases by SEC on progenitors at Ripple.
At the beginning of this week, SEC (Securities and Exchange Commission), United States, filed a case on Ripple payment company established by the founders of XRP.
Securities and Exchange Commission claims that Ripple group has Put up $1.3 billion in unregistered securities sales from 2013 and carried the same to distribute their securities illegally at the time of selling its periodical chunks amounting to 6 Billion XRP that it has in an escrow wallet.
The SEC said that Ripple sells the money to control the rates of their tokens, similarly to Central banks.
Ripple dismissed claims and strongly supports their views in the court; many cryptocurrency exchanges and some other financial firms are halting the trading of XRP and started liquidating XRP holdings.
This event is taking place because if the SEC won the case against Ripple firms, it would become easier for the SEC to track down crypto firms selling XRP digital currency based on similar grounds.
According to data on the coin market cap, Bitstamp is listed among the top 20 exchanges globally, and Bitstamp individually stands on 15th position in the trading market.
On 2 august 2022, Bitstamp announced that it had permanently ceased trading for XRP for US users. Bitstamp has a user base of 4 million globally.
There is a tough Tug and War situation between the securities and exchange commission and Ripple, and this is not the first time the SEC filed a case against Ripple. It started in December 2020, and the case is still in court, and now judgment has come.
Source: https://www.thecoinrepublic.com/2022/08/03/bitstamp-exchange-planned-to-delist-xrp-pair/