U.S. SEC Drops 3 Years Long Charges Against Ripple’s Founders
Ripple Labs wins as SEC drops charges on selling XRP token. Ripple's leaders and their lawyer see it as a big victory, but challenges remain until November 9, 2023.
Ripple Labs leaders are celebrating because the Securities and Exchange Commission (SEC) dropped charges against its executives. Ripple's top lawyer, Stuart Alderoty, said this is not just a normal agreement but a total win for Ripple.
The SEC had taken Ripple's CEO, Brad Garlinghouse, and co-founder, Chris Larsen, to court. They wanted to proof that they did something wrong by selling a crypto token called XRP. But now, the SEC said they will drop this case against these Ripple leaders.
However, the SEC and Ripple will still discuss another problem. They want to debate to know if Ripple should face any punishment for selling XRP to big companies. This case will go on until November 9, 2023.
This whole issue started in 2020. The SEC said Ripple sold XRP without permission and got $1.3 billion. But in July, a New York judge, Analisa Torres, ruled that only some of Ripple's sales were wrong. She said other sales were okay. This meant both the SEC and Ripple had small victories.
Ripple's leader, Chris Larsen, was very happy with this result. He said they defended themselves against a wrong claim and won.
