SEC Drops Charges Against Ripple’s CEO Brad Garlinghouse
The SEC’s lawsuit against Ripple co-founder Chris Larsen and CEO Brad Garlinghouse for alleged violations of securities laws has been withdrawn.
This resulted in the price of the XRP token rising above $0.5.
A settlement agreement was reached between the parties, which prevents future lawsuits on the same grounds against the defendants.
Ripple Legal Director Stuart Alderoty commented that the SEC’s actions were a mistake and they have now surrendered by dropping all charges against the executives, calling it a capitulation rather than a settlement.
In December 2020, the Commission filed a lawsuit against Ripple, claiming that the company had sold unregistered securities in the form of XRP worth approximately $1.39 billion over seven years.
The suit also named Garlinghouse and Larsen as defendants, accusing them of selling $600 million worth of tokens.
The SEC’s complaint included allegations that Garlinghouse misled investors with statements about “playing the long game” while actually selling his XRP holdings.
