SEC and Ripple to go to court over $1bn XRP sale

Ripple is facing a lawsuit over securities infractions, the regulator reported on Monday, and the matter is likely to go to trial.

The US Securities and Exchange Commission (SEC) has acknowledged the possibility of a settlement, but said that such a development is very unlikely.

Ripple and SEC have addressed a letter to Federal Judge Analisa Torres at the US District Court for the Southern District of New York confirming their skepticism that the issue will most likely be decided in court.

The letter noted that previous settlement talks took place under the Trump administration and were led by SEC directors who are no longer employed by the organization. Therefore, the issue would be better resolved in court.

SEC claims that Ripple has violated federal securities laws. CEO Brad Garlinghouse and chairman Chris Larsen sold over $1bn in XRP to retail investors. They are accused of doing so without registering the cryptocurrency as security or requesting exemption from the relevant authorities, according to SEC.

SEC further noted that Larsen and the company had received notifications that the sale could be considered investment contracts. However, Ripple has argued that the documents were part of implied attorney-client privilege and that SEC's request was improper.

Ripple's value took a hit amid the WallStreetBets saga, ruffling some investors' feathers.

Meanwhile, Ripple casinos still welcome players. You can find Ripple as a viable banking option at 1xBit and BitStarz.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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