Ripple CEO Brad Garlinghouse shared a note sent to his employees before the US Securities and Exchange Commission (SEC) officially announced his lawsuit against the company.
The famous CEO urged Ripple employees not to worry about the lawsuit, which is just the beginning of a legal battle that it expects to continue for a long time:
What Does the Lawsuit Mean for Ripple?
The SEC announced its charges against Ripple on December 23, accusing it of illegally collecting an estimated $ 1.3 billion via an “unregistered, outbound” XRP offer.
The consensus among cryptocurrency lawyers says the case is not very lenient. Compound Finance General Counsel Jake Chervinsky said central exchanges are also likely to remove XRP from listing until the case is resolved. What will happen remains a mystery, as such legal confusion has never been seen before.
The Hard Fall of XRP
As expected, XRP did not go unresponsive to the SEC bomb. At 05:38 UTC, the cryptocurrency fell to an intraday low of $ 0.33. Having dropped more than 35 percent in the past two days, the cryptocurrency effectively wiped out its entire rally in late November. According to Santiment data, there was also a sudden drop in the number of large XRP addresses, which means whales are behind this surrender.
Meanwhile, Chicago-based Beaxy was the first cryptocurrency exchange to halt all XRP trading activities, and many think this is just the beginning.