News – EN – Ripple and its founders accused of manipulating the price of XRP – Cryptonaute


Today, February 22, a first court hearing between Ripple and the SEC takes place The first phase of the trial will run until August An agreement between the two parties is not impossible until then, however

The discussions are going to be complex, however While the regulator’s staff has changed since the complaint, the charges against the XRP issuer remain unchanged Maybe they even get heavier

On February 18, the authority completed its legal complaint The accusation persists Ripple Labs, Christian Larsen and Brad Garlinghouse violated securities laws from 2013 through the sale of XRP

However, in 2012, the firm received a first warning about the status of the token The leaders decided to ignore it, however. And that allowed Ripple to raise “at least $ 1.38 billion” thereafter

However, the charges are heavy for the founders Larsen and Garlinghouse pocketed $ 600 million through unregistered sale of their tokens However, according to the SEC, they “misled” investors for this.

The authority recalls that the CEO has, on several occasions, assured that he will keep his tokens for the long term The facts tell a different story, however. The regulator denounces a real asymmetry in terms of information

“Ripple created such an information vacuum that Ripple and the two insiders who had the most control over it – Carsen and Garlinghouse – could sell XRP in a marketplace that only had the information the defendants chose to share on Ripple and XRP, ”he wrote

To support these accusations, the authority cites an episode dating back to 2015 At that time, one of the market players, also paid in XRP, temporarily froze the sale of the assets of two founders

The rationale? The price of tokens was falling According to the complaint, Larsen ordered the maker to “keep sales on hold for now” And this, “until the market recovers from this mistake “

And such an episode would have happened again in 2016 However, for the SEC, this “information asymmetry” persists in favor of the co-founders of Ripple Thus, it allows them to continue selling XRP, constituting “substantial risk for investors. “

Ripple, Bitcoin, Cryptocurrency, US Securities and Exchange Commission, Brad Garlinghouse

News – FR – Ripple and its founders accused of manipulating the price of XRP – Cryptonaute
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