SEC drops charges against Ripple Labs executives

The United States Securities and Exchange Commission (SEC) withdrew its accusations against 2 company executives in the lawsuit filed by Ripple Labs for alleged violation of securities law.

In the petition sent by the SEC to New York Southern District Court Judge Analisa Torres, it was stated that allegations that Ripple Labs CEO Brad Garlinghouse and Ripple Labs co-founder Chris Larsen, aided and abetted the sale of the XRP cryptocurrency. They were removed.

The SEC filed a lawsuit against Ripple Labs, the company behind XRP, and its executives in December 2020, accusing the company and two executives of conducting an unregistered $1.3 billion securities offering by selling XRP, which It was launched in 2012.

Ripple had argued that XRP, a token developed to facilitate cross-border payments, was not a security.

In July, the lawsuit filed by the SEC over the XRP cryptocurrency concluded in favor of Ripple.

Judge Torres ruled that Ripple did not violate federal securities law by selling the XRP cryptocurrency on exchanges. Torres later denied the SEC’s request to appeal that decision. (AA)