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

[wogojump]

4 hours ago, QWE said:

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

In the full article they refer to additional entities, but not by their name.  See page 5 on: https://www.sec.gov/litigation/complaints/2020/comp-pr2020-338.pdf.  I believe Jed = 20. Co=Founder.  I am not sure if Jed will also be held accountable as well or if he will be off the hook because he left he company early enough.

[BillyOckham]

17 minutes ago, wogojump said:

Did you even read this article: https://www.sec.gov/news/press-release/2020-338?  You can try reading this page: https://www.sec.gov/about/what-we-do.

Or maybe you are trying to argue a conspiracy theory that the SEC is corrupt?  Either way I don't want to hear your nonsense, blocked.

 

Yes I did.  
 

They are harming retail investors right now and have been for years by inaction if you believe this charge is a real reflection of how things stood.

So you think that no personal animus or agendas ever get into government actions?  That every department achieves its stated public goals?  That they only ever do what their charter charges them with?  That they sometimes don’t break the very things they are supposed to protect?

They are harming the retail investors right now and had years to do something if they felt that way.  That he does this on his way out the door is extremely telling.

I take it as an accolade that someone with your posting history blocks me.

 

[AgamemnonUA]

I don't think that this will harm us. Instead I think now that the SEC wants to at the very least stop Brad and Chris to dump their bags and perform what is basically insider trading. See here: https://www.sec.gov/litigation/complaints/2020/comp-pr2020-338.pdf

[ilovexrp]

One black swan event that is now placing massive pressure on XRP price is a lawsuit that Ripple has received from the SEC regarding XRP is unregistered security.

U.S Securities and Exchange Commission (SEC) announced on Dec.22 in federal district court in Manhattan that it has filed an action against Ripple Labs as well as its CEO, Brad Garlinghouse, and co-founder Christian Larsen.

So sad......................

https://azcoinnews.com/sec-sues-ripple-and-two-executives-xrp-dumps-20-on-sec-lawsuit-worries.html

[AlejoMoreno]

I’m thinking that the outcome will be a fine and slap on the wrist. It’s anyone’s guess how the market will respond.

Of course XRP will drawdown easily due to bad news even though it rarely surges due to good news.

To Ripple’s defense, they have been very transparent regarding all of their activities related to XRP.

I don’t know how much point there is in speculating, will just have to see what happens after Ripple defends itself.

The languages seems to be worded so that they want to make sure to give Ripple a good slap on the wrist. I don’t get the feeling that they want to kill XRP, but I don’t speak legalese.

[Guest]

I wonder. Could the US government confiscate or force Ripple to hand over the XRP they have in escrow? 

Why would they do it?

Tin foil hat on: 

The US has trillions in national debt. The pandemic has fast-forwarded the debt issue decades into the future.

China is forging ahead in this financial cold war. They've been so strategic that the majority of BTC is mined there. 

We know the US government is hoarding BTC. That's public knowledge.  This act alone has propelled Wall Street speculators into they mix, and now financial institutions are also jumping in to get a piece of the pie. It's becoming the largest self-fulfilling prophesy of our lifetime. 

If the US can find a way to get their hands on this escrowed XRP, they essentially have an unlimited war chest to fight the debt crisis. Not to mention that they would have an enormous stake in the developing internet of value. It would be a devastating blow to Ripple in the short to midterm. It would be incredibly good for holders long-term. 

Takes tin foil hat off. 

Probably wishful thinking 🤔 

[buh]

it is clear that this SEC "administration" wanted to have blood in crypto. And it so happens that amongst the top ones, XRP - because of Ripple - it has actually a phsyical presence.

 

Just broadly checking the lawsuit from the SEC and i have to say, pitty the SEC was not "providing guidance" 5 to 6 years earlier because indeed, it would have helped greatly the hodlers:

 

"6. Meanwhile, Larsen—Ripple’s initial chief executive officer (“CEO”) and current chairman of the Board—and Garlinghouse—Ripple’s current CEO—orchestrated these unlawful sales and personally profited by approximately $600 million from their unregistered sales of XRP.

7. Garlinghouse did so while repeatedly touting that he was “very long” XRP, meaning he held a significant position he expected to rise in value, without disclosing his sales of XRP"

 

I honestly never mind with Ripple's holdings and the daily sellings to boolster the XRP ecosystem and market. I assumed the founders were selling a bit, that is fair.. but fucki** $600 million?? that touches a bit the heart, i have to say. The founders share was by fair the worst for me, but was not remotely aware this level of selling (besides Jed of course).

 

Of course, talking about Jed, i would discard him behind the wood yet. The fact the SEC is after Larsen and Brad, i woulnd't find it surprising they later go after stellar, Jed, and many similar projects. I would say, this is just the start for crypto.

 

also, one i was afraid to ask myself, related to the use case of ODL. Since earlier this year Ripple shifted their ODL from "treasury" sells to smaller sells. I never understood exactly what that entailed; well i guess there was no liquidity at all to support such large volume payments.

"338. Since its launch, ODL has gained very little traction, in part due to certain costs of using the platform. From October 2018 through July 26, 2020, only fifteen money transmitters (none of which are banks) signed on to potentially use ODL, and ODL transactions comprised no more than 1.6% of XRP’s trading volume during any one quarter (and often substantially less).

339. Much of the onboarding onto ODL was not organic or market-driven. Rather, it was subsidized by Ripple. Though Ripple touts ODL as a cheaper alternative to traditional payment rails, at least one money transmitter (the “Money Transmitter”) found it to be much more expensive and therefore not a product it wished to use without significant compensation from Ripple."

 

unfortunately, i have to shift my zerps somewhere else; the uncertanty and fear at the moment, and pending grueling months ahead are nto worth anymore the antecipaiton.

[solid102]

2 hours ago, buh said:

it is clear that this SEC "administration" wanted to have blood in crypto. And it so happens that amongst the top ones, XRP - because of Ripple - it has actually a phsyical presence.

 

Just broadly checking the lawsuit from the SEC and i have to say, pitty the SEC was not "providing guidance" 5 to 6 years earlier because indeed, it would have helped greatly the hodlers:

 

"6. Meanwhile, Larsen—Ripple’s initial chief executive officer (“CEO”) and current chairman of the Board—and Garlinghouse—Ripple’s current CEO—orchestrated these unlawful sales and personally profited by approximately $600 million from their unregistered sales of XRP.

7. Garlinghouse did so while repeatedly touting that he was “very long” XRP, meaning he held a significant position he expected to rise in value, without disclosing his sales of XRP"

 

I honestly never mind with Ripple's holdings and the daily sellings to boolster the XRP ecosystem and market. I assumed the founders were selling a bit, that is fair.. but fucki** $600 million?? that touches a bit the heart, i have to say. The founders share was by fair the worst for me, but was not remotely aware this level of selling (besides Jed of course).

 

Of course, talking about Jed, i would discard him behind the wood yet. The fact the SEC is after Larsen and Brad, i woulnd't find it surprising they later go after stellar, Jed, and many similar projects. I would say, this is just the start for crypto.

 

also, one i was afraid to ask myself, related to the use case of ODL. Since earlier this year Ripple shifted their ODL from "treasury" sells to smaller sells. I never understood exactly what that entailed; well i guess there was no liquidity at all to support such large volume payments.

"338. Since its launch, ODL has gained very little traction, in part due to certain costs of using the platform. From October 2018 through July 26, 2020, only fifteen money transmitters (none of which are banks) signed on to potentially use ODL, and ODL transactions comprised no more than 1.6% of XRP’s trading volume during any one quarter (and often substantially less).

339. Much of the onboarding onto ODL was not organic or market-driven. Rather, it was subsidized by Ripple. Though Ripple touts ODL as a cheaper alternative to traditional payment rails, at least one money transmitter (the “Money Transmitter”) found it to be much more expensive and therefore not a product it wished to use without significant compensation from Ripple."

 

unfortunately, i have to shift my zerps somewhere else; the uncertanty and fear at the moment, and pending grueling months ahead are nto worth anymore the antecipaiton.

The ODL part was something we already knew and Brad already discussed. What Ripple did by subsidizing ODL use is exactly what VISA at one point did in order to grow the liquidity of their cards. Can you claim VISA is not a viable financial endeavor? 

[buh]

alread read the whole thing. Honestly, all of it resumes that "Ripple is a Ponzi" scheme; going through the SEC complaint, it really seems they are targetting Ripple as a company that manages a pyramid scheme. The SEC concludes that Ripple's operations are not profitable enough, reason why banks have no use for its tecnhology, and ripple's ODL appear to provide few advantages (if some) to traditional systems.

 

bottom line, the SEC aleges Ripple uses XRP as a for-profit security to enirch itself, their CEOs, their shareholders; also that Ripple appears to pump the price, so that retail investors buy the pump and they dump on the market.

 

really scary the way the SEC is heading here.

[Karl]

If the SEC does not manipulate the market with its tendentious measures in favor of the competition, I no longer know what market manipulation is.

Ripple and we as investors should seek counterclaims.

[paym8]

5 hours ago, Karl said:

If the SEC does not manipulate the market with its tendentious measures in favor of the competition, I no longer know what market manipulation is.

Ripple and we as investors should seek counterclaims.

this

I posted the following earlier but it fell on deaf ears,

It involves a successful class action AGAINST the SEC  !!

(this is not about defending ripple or not)

IF they succeed, then, the SEC have failed in their duty to protect unsophisticated investors for so many years.

As an aside, they may not be able to claim disgorgement from ill gotten gains, as in the below case, this a sets a precedent? 

partial quote

https://www.reuters.com/article/us-usa-sec-lawsuit-idUSKBN1CW2YT

Quote

U.S. SEC wrongly collected $14.9 billion from defendants: lawsuit

By Nate Raymond

3 MIN READ

BOSTON (Reuters) - The U.S. Securities and Exchange Commission has been hit with a class action lawsuit seeking to recover $14.9 billion that lawyers for an investment firm’s liquidating trustee say should not have been collected given a recent U.S. Supreme Court ruling.

The lawsuit was filed in federal court in Boston on Thursday by the liquidating trustee for F-Squared Investment Management LLC, who contends the firm paid the securities regulator $30 million that the SEC was not actually authorized to collect.

The Supreme Court in June scaled back the SEC’s power to recover ill-gotten profits from defendants’ misconduct, handing Wall Street firms a victory and dealing a blow to the regulator’s enforcement powers.

The Supreme Court ruled that the SEC’s ability to have defendants disgorge the sums they earned while violating securities laws was subject to a five-year statute of limitations.  

 

[manifestxrpdestiny]

18 hours 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.

That’s a HORRIBLE idea... while it may increase the value of the market, it would drastically reduce xrp liquidity, which would be bad for the use-case... moon vs Mars.

[manifestxrpdestiny]

18 hours 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.

That’s a HORRIBLE idea... while it may increase the value of the remaining market, it would drastically reduce xrp liquidity (right term? I don’t mean current market liquidity, I mean how much each xrp could be divided), which would be bad for the use-case... moon vs Mars.

[manifestxrpdestiny]

18 hours 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.

That’s a HORRIBLE idea... while it may increase the value of the remaining market, it would drastically reduce xrp liquidity (right term? I don’t mean current market liquidity, I mean how much each xrp could be divided), which would be bad for the use-case... moon vs Mars.

[mrak]

24 minutes ago, manifestxrpdestiny said:

That’s a HORRIBLE idea... while it may increase the value of the market, it would drastically reduce xrp liquidity, which would be bad for the use-case... moon vs Mars.

Explain how burning unused XRP (presently in escrow) would affect liquidity. Burning this unused XRP won't even affect the price (consult Stellar). Perhaps give me the equation concerning the divisibility problem you are referring to.