SEC Sues Ripple And Two Executives, XRP Dumps 20% On SEC Lawsuit Worries

[Fleshmeister]

Here we go!

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The SEC's complaint, filed today in federal district court in Manhattan, charges defendants with violating the registration provisions of the Securities Act of 1933, and seeks injunctive relief, disgorgement with prejudgment interest, and civil penalties.

https://www.sec.gov/news/press-release/2020-338

 

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Here's the whole shebang

https://www.sec.gov/litigation/complaints/2020/comp-pr2020-338.pdf

 

Edited December 22, 2020 by Fleshmeister
Added the PDF too

[thinlyspread]

[QWE]

Interesting that Jed McCaleb is not mentioned anywhere in this, has he not been selling XRP on daily basis for the past 5 years?

Edited December 22, 2020 by QWE

[Karl]

 

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[...] ongoing digital asset securities offering [...]

Whats the definition of this term?

[LetHerRip]

 

[mrak]

I'm really happy to finally see this. Many in the XRP community have been complaining about the large amounts of XRP that are owned by Ripple and the founders for many years. In fact, I would say that this is the original sin that is at the origin of all animosity directed towards XRP. My hope is that Ripple gets a big fine, and that as part of the settlement, they agree to burn 100% of the XRP currently in escrow.

[VanGogh]

5 minutes ago, mrak said:

I'm really happy to finally see this. Many in the XRP community have been complaining about the large amounts of XRP that are owned by Ripple and the founders for many years. In fact, I would say that this is the original sin that is at the origin of all animosity directed towards XRP. My hope is that Ripple gets a big fine, and that as part of the settlement, they agree to burn 100% of the XRP currently in escrow.

Burn it, perhaps, but certainly this is the beginning of them having to square with holding so much xrp. The US has to stage some theater to make it look like the company was made to pay before blessing their technology. In the end xrp comes out much stronger and Ripple will no longer control the lions share of xrp. 

[Guest]

8 minutes ago, mrak said:

I'm really happy to finally see this. Many in the XRP community have been complaining about the large amounts of XRP that are owned by Ripple and the founders for many years. In fact, I would say that this is the original sin that is at the origin of all animosity directed towards XRP. My hope is that Ripple gets a big fine, and that as part of the settlement, they agree to burn 100% of the XRP currently in escrow.

I think they will be fined, but not required to burn the XRP in escrow. 

[Karl]

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The Commission seeks a final judgment: (a) permanently enjoining Defendants from violating Sections 5(a) and 5(c) of the Securities Act, pursuant to Section 20(b) of the Securities Act [15 U.S.C. § 77t(b)]; (b) pursuant to Section 21(d)(5) of the Securities Exchange Act of 1934 (“Exchange Act”), (i) ordering Defendants to disgorge their ill-gotten gains and to pay prejudgment interest thereon and (ii) prohibiting Defendants from participating in any offering of digital asset securities; and (c) imposing civil money penalties on Defendants pursuant to Section 20(d) of the Securities Act [15 U.S.C § 77t(d)].

That's a obviously a silverback bonk.

But, of course, the US SEC lacks a clear final definition of a "digital asset security".

Why should Ripple even consider XRP as "security", when XRP was actually defined as publicly tradable digital currency by other US government agencies?

[BillyOckham]

46 minutes ago, LetHerRip said:

 

So you really are willing to admit to glee when there is bad news for XRP.   You are here on an XRP chat forum and relish and gloat any time you see an opportunity to trumpet bad news.

I can’t decide if that is despicable or pathetic...  maybe both?

[LetHerRip]

2 minutes ago, BillyOckham said:

bla bla bla

None of this information now presented against Ripple should be news to you, your boy @LetHerRip been out here warning the XRP community for years and years, only cult members like yourself couldn't see this coming. I do enjoy seeing that the strong hand of the law agrees with me however and echos everything I have been saying all along. Boyaaaaaah.

[FineSir]

No sirs this is good for xrpe. We can now remove brad chris and jeb.

 

We are proud owners of shares in ripple

[solid102]

5 minutes ago, LetHerRip said:

None of this information now presented against Ripple should be news to you, your boy @LetHerRip been out here warning the XRP community for years and years, only cult members like yourself couldn't see this coming. I do enjoy seeing that the strong hand of the law agrees with me however and echos everything I have been saying all along. Boyaaaaaah.

Ok that is just about enough.. while you did have some funny moments here and there this is just getting pathetic and sad for someone to hold so much animosity against something that don't effect them in any way to spend almost all their time on a forum of enthusiast just spreading FUD. There is a life outside man go out and live it and until you do that you are going on the ignore list and I highly recommend everyone ignore him so we can actually have topics we can discuss things like adults. 

[LetHerRip]

4 minutes ago, solid102 said:

Ok that is just about enough.. while you did have some funny moments here and there this is just getting pathetic and sad for someone to hold so much animosity against something that don't effect them in any way to spend almost all their time on a forum of enthusiast just spreading FUD. There is a life outside man go out and live it and until you do that you are going on the ignore list and I highly recommend everyone ignore him so we can actually have topics we can discuss things like adults. 

 

 

[Karl]

Personally I like this one:

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XRP II is registered as a money service business with the United States Financial Crimes Enforcement Network (“FinCEN”) and as a virtual currency business with the New York State Department of Financial Services (“NYDFS”)

So in its allegation, the SEC points out that XRP is a registered virtual currency and therefore no security.