New claim on Ripple (XRP): not just the CEO, also CEO’s wife is involved
Ripple and the SEC fight has now become the number one priority of the entire cryptocurrency industry. While the SEC lawsuit against Ripple has left the industry at a standstill, each clause of the 71-page statement of the case appears to have a separate significance. It is directly stated that Ripple and its two executives made unfair profits by selling loaded XRP, and it is now emphasized that even the CEO’s wife participated in this process.
SEC exposes Dirty Laundry
The SEC has released a detailed report on all XRPs manufactured or sold since their initial release. Ripple CEO Brad Garlinghouse and Chris Larsen are seen as two people involved in the bulk XRP sale, according to the SEC’s claims. The total sale of the two was recorded as $ 600 million, while one of the people who made the sale was identified as Garlinghouse’s wife.
According to the SEC record, 3.9 billion XRP for market sales, 4.9 billion XRP for corporate sales, 4.1 billion XRP for other XRP distributions, 1.7 billion XRP for co-founder Larsen and finally 321 million XRP for Garlinghouse is the total distribution of the firm, which distributes in the form of 14.6 billion XRP.
Garlinghouse and wife sold millions of XRP
The SEC found that Larsen and his wife made loaded XRP sales in the period from 2015 to March 2020. Larsen and his wife are said to have generated more than $ 450 million in revenue from their bulk XRP sales. The SEC also stressed that Ripple’s top executives sold XRP at a special price to anyone who wanted to make purchases without any restrictions. The ability to sell these XRP tokens to anyone is contrary to the status of an asset that is a securities, according to the SEC.
Increased Risk Of XRP Being Declared Securities
XRP is normally designed as a use-oriented cryptocurrency, the SEC said, noting that until recently, it was only used for sales and did not have real use. This is seen as a factor that makes it easier for XRP to declare securities.
The SEC had previously halted Telegram’s GRAM token sale due to this issue and declared gram as a securities. The decisions and statements made by the SEC indicate that a similar end may be seen for XRP.