customers to trade on the platform and exerting control over customer assets.īinance responded by accusing the SEC of attempting to unilaterally define the crypto market structure and prioritizing headlines over investor protection. Securities and Exchange Commission filed 13 charges against Binance and Changpeng Zhao (CZ), alleging actions such as allowing high-value U.S. As a result of this, Ripple’s CEO has expressed confidence in winning the lawsuit by the first half of 2023. However, the investigation and litigation are ongoing. In October 2022, the SEC was ordered to turn over the “Hinman Documents,” which was seen as a victory for Ripple. Ripple accused the SEC of showing partiality, while the SEC pointed to the negative sentiments and mockery faced by XRP holders.įurther, XRP’s price has been affected by the SEC vs Ripple battle, experiencing fluctuations based on the perceived outcomes of the court proceedings. Ripple sought the presence of Bill Hinman, a former SEC chair, to support their argument.īoth sides have prolonged the court proceedings by requesting documents and information from each other. But the SEC argued that XRP met the criteria of a security asset based on the “Howey test,” emphasizing the role of Ripple in promoting XRP’s profitability.īoth parties employed strategic moves in the case, with the SEC gathering global regulatory information and appointing Gary Gensler, who has knowledge of crypto technology, as the SEC chair. Ripple and its executives maintained that XRP is not a security but rather a decentralized digital currency that does not fall under the SEC’s jurisdiction. The SEC demanded that Ripple surrender the $1.3 billion raised from the token sales and requested a ban on the defendants from selling tokens in the crypto market. ![]() Ripple Labs, along with its co-founder Christian Larsen and CEO Brad Garlinghouse, were sued by the SEC for allegedly conducting an unregistered securities offering through the sale of XRP tokens. Here are the key points and developments in the case: The Ripple vs SEC lawsuit has been a significant event in the cryptocurrency industry since it was filed in December 2020. In addition, the year 2023 led two more big shots exchanges Binance and Coinbase to face legal actions from the SEC. However Ripple Labs which is still trying to come over from the SEC battle from 2020. ![]() They failed to prove their loyalty in the industry and led the crypto market in the down fall. In 2022 the SEC charged two key players FTX and its CEO Sam Bankman Fried as well as Terra Labs and its CEO Do Kwon. Let’s dive into the SEC lawsuit against the major player in the crypto market, which is currently focusing on the centralized cryptocurrency exchanges. Also, regulatory authorities worldwide have been taking steps to ensure compliance within the rapidly evolving digital asset landscape. These legal lawsuits highlighted the increased regulatory scrutiny surrounding the cryptocurrency industry. ![]() The SEC lawsuit related to securities violations, including the unregistered offers and sales of the respective tokens. It is a one more turbulent year for the cryptocurrency industry after the U.S Securities and Exchange Commission (SEC) sued crypto titans such as Binance and Coinbase.
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