Moneygram clarified that such an agreement involved Ripple's foreign exchange blockchain trading platform in its existing cross-border payments solution for four currencies. Larsen received 9 billion XRP out of the 20 billion. As some may know, the suit claims that Ripple conducted $1.3 billion unregistered securities offerings, which the crypto startup continues to deny.
While bitcoin, the most famous blockchain-based currency, was released in a decentralized way by a pseudonymous programmer, XRP was launched in 2012 by Ripple Labs and San Francisco-based Ripple is still the largest owner of XRP.
Cryptocurrencies plunged overnight on the news of the impending SEC action against Ripple, with bitcoin down over 5% and ether down over 7%.
"XRP experienced massive upward price movements in November due to retail investors' interest on the Spark airdrop scheduled for December 12, 2020", said Florent Moulin, a cryptocurrency researcher at data provider Messari. Ripple suggests that it will sell XRP in the escrow account to increase the liquidity of the currency and strengthen the XRP markets.
Now, the cryptocurrency-friendly Elad Roisman will be working as the chairman of the SEC. It reasoned that the fund "does not invest in assets that are reasonably likely to be deemed securities".
Ontario Premier Ford says Ontario is at "tipping point" against COVID-19
The province's lockdown that begins December 26 is set to last 28 days for southern Ontario but will lift for northern Ontario on January 9.
Ripple's chief executive Brad Garlinghouse and co-founder Chris Larsen said the company expects the SEC to file a lawsuit against Ripple for selling unregistered securities to traders. In the complaint, the SEC alleges that "onboarding onto ODL was not organic or market-driven" but rather "subsidised by Ripple".
"To be clear, this is all based on their illogical claim that XRP is, in their view, somehow the functional equivalent of a share of stock", he wrote in a companywide email, which he has since shared in a blog post on Ripple's website.
"Issuers seeking the benefits of a public offering, including access to retail investors, broad distribution and a secondary trading market, must comply with the federal securities laws that require registration of offerings unless an exemption from registration applies", Stephanie Avakian, director of the SEC's Enforcement Division, said in a statement.
The SEC alleged that Ripple used XRP, the cryptocurrency two of its founders created, to conduct an ongoing Dollars 1.3 billion sales of unregistered securities.